Nasdaq Group, in a recent press release announced the Nasdaq CME Crypto Index. The index is based on the top digital assets, such as Bitcoins, Ethereums, and Chainlink.
This update is coming at a very delicate moment for LINK. It could also affect the direction of the altcoin in the future.
What is the best way to address a major market gap?
The altcoin was currently retracing its price into an important market imbalance zone of around $13. This level of price has been used as a launchpad for LINK’s past rallies.
The market gap became a critical imbalance zone as the selling pressure increased. Buyers appeared to test the water rather than rush in.
It doesn’t stop there, as the momentum indicators also seemed to support this argument. On the charts, the Stochastic RSI was drifting towards the oversold territory – A zone often associated with exhaustion from sellers.
When the Stochastic RCI reaches these levels, it is more likely that a reversal will occur.
TradingView
On-chain metric’s observations
The on-chain story added another dimension.
LINK’s circulating token sales increased by approximately 5% in the last 24 hour. In most cases, an increase in turnover of the stock market during a phase of retracement is more likely to be a result from investors’ tactical planning than a panic sale.
The following are some of the ways to get in touch with us LINK’s caseThe increase in activity could indicate that the participants are preparing to make a move.
Source: Token Terminal
The liquidity cluster is $15
AMBCrypto also found that the data on token liquidity was pointing to a short-term goal. LINK’s heatmaps of liquidity data showed a significant liquidity cluster near $15.
These price clusters are like magnets. If momentum grows from the $13 zone, the liquidity zone might be the next target.
Coinglass
The institutional aspect is also important. Nasdaq teaming up Chainlink is at the forefront of the regulated financial industry with its partnership with CME.
LINK being in the basket alongside Bitcoin and Ethereum is a significant change. This is no longer an experimental altcoin. It’s beginning to appear as a part of the crypto core infrastructure.
The price chart is still the ultimate authority. LINK must stay above daily imbalance to maintain the reversal expectation.
Conclusions
- LINK’s price has stabilized at $13, with institutional headlines arriving in a technical sensitive zone.
- Its significant liquidity around $15 is a target to aim for if the momentum reverses.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
