Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice
The Bitcoin market has been surging at press time, while the market of Chainlink has been noting a drop. This inverse relationship between the two has been because of the low correlation between the two digital assets. Due to this, although the price may be rising in the BTC market, LINK’s price was still dropping.
At the time of writing the price of LINK was at $12.04 with the market cap of $1.48 billion.
Chainlink one-day chart
The above chart of Chainlink highlighted the rising value of the digital asset in the long term. Although the value has now been consolidating between the resistance at $14.78 and support at $11.73, there has been an evolving selling pressure.
This selling pressure poses as a perfect chance for short-traders. The value of the token was close to breaching the support at $11.73 and might move past another support at $11.21.
The Relative Strength Index has been showing the value dropping away from the equilibrium zone. The plunging value indicated increased selling pressure. This growing selling pressure was also affirmed by the Awesome Oscillator. The bars dropping under the zero-line and changing to red was a signal for the seller momentum in the market.
The falling price of LINK coincides with the rising price of Bitcoin. The selling pressure has been increasing at press time, and a short position with entry at $12.12 could benefit the traders. They can take profit at $10.41, as the market gets more bearish.