Will the Chainlink bulls lose ground as selling pressure increases?

Chainlink (LINK) increased by 2% on June 16, raising hopes for a bounce back of 16%. However, these hopes were quickly dashed in the past 24 hours as LINK recorded a fall of 3% at the time of writing.

This development occurs in the context of Bitcoin (BTC) falling into instability due to the latest news from the Middle East. The "king of the coin world" is predicted to have a price bounce back in the range of 102,000–104,000 USD and a price fall as it approaches the range of 108,000–110,000 USD in the coming week.

! LINK/USDT Chart | Source: TradingViewAt the time of writing, Chainlink is offering an attractive buying opportunity with a well-defined exit point. The mid-border support zone at $13.2 is expected to continue to play a supportive role. The lượng( )Cân OBV indicator indicates that selling is dominant, while the RSI (Chỉ Relative Strength đối) is in a negative state.

Therefore, although there is still a possibility of a bounce back from the support zone in between the range, traders should prepare for the scenario where the price falls below the 12.64 USD mark. If Bitcoin bounces back, the market sentiment towards LINK may improve again.

The Chainlink bull market will face challenges in driving momentum

! Source: IntoTheBlockLINK's In/Out of the Money data shows that the $13.6–13.9 zone is a fairly large supply zone nearby. A rebound from the $13 support zone will need strong demand to take the price above the next resistance zone at $14–14.4.

However, this scenario is not very feasible considering the weak price action in June. The technical chart reflects the possibility of the price falling to the level of 12.1 USD, even to the lower boundary at 10.8 USD.

! Source: IntoTheBlockThe net cash flow data on the exchange shows some signs of accumulation over the past week. Specifically, analysts recorded a volume of cash outflows of about 261,000 LINK, equivalent to $3.44 million. The withdrawal of tokens from the exchange is usually a positive accumulation signal.

In June, the net cash flow generally showed positive signals, with a clear accumulation trend over the past 5 days. However, the 30-day volatility indicates that nearly 79,000 LINK (, equivalent to 1.04 million USD ), is returning to the exchange.

Overall, the price action along with the data from IntoTheBlock is leaning towards the negative scenario over the next few days. Traders may consider opening a short position if LINK breaks the $12.64 mark and then retest the $13 area as a new resistance.

Justin