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- Chainlink presents a strong bullish structure following support at $6.50.
- A v-shaped recovery pattern attracts immense volume as bulls eye $8.15.
- LINK price sits on top of a robust support area highlighted by the IOMAP on-chain model at $6.74.
Chainlink price is pushing to recover losses incurred after it got rejected from highs around $8.15. The buyer congestion at $6.50 allowed buyers to take control while aiming for a considerable rebound. LINK price ushers in the American session on Friday in the green while exchanging hands at $7.22.
Chainlink price banks on this robust fundamental support to tag $8.15
Chainlink has nurtured a V-shaped recovery pattern since it embraced support at $6.50. The term V-shaped refers to a sharp downtrend over a period followed by rapid recovery. Traders looking for trade opportunities with this pattern must confirm a spike in volume before going all-in on LINK. Its four-hour reveals strong volume indicators, which may help the token sustain movement to $8.15.
The 200-day (purple) Simple Moving Average (SMA) must hold to give buyers enough time to increase demand. It is worth mentioning that a buy signal from the Moving Average Convergence Divergence (MACD) indicator cements the Chainlink price bullish outlook. However, the MACD must break into the positive region for LINK price to comfortably close the gap to $8.15.
LINK/USD four-hour chart
According to insight from IntoTheBlock’s IOMAP model, odds may remain in the bulls’ favor, at least in the short term. Approximately 7,650 addresses previously purchased up 290 million tokens between $6.63 and $6.83. Investors within this range will likely hold their positions with the hope that LINK price would settle above its target at $8.15.
Chainlink IOMAP model
On the bright side, Chainlink price’s path to $8.15 looks relatively smooth apart from a weak hurdle at $7.34. Hence, a minor increase in buying pressure could reinforce the V-shaped recovery.
Chainlink Supply Distribution
Previously sidelined investors appear to be making a comeback into the market by filling their bags. According to Santiment, addresses holding between 10,000 and 100,000 tokens increased to 3,015 from 2,852 on September 13.
If investor interest picks up the pace, the move to $8.15 would be a matter of when and not if. On the other hand, traders who prefer to lock in their gains early should consider the 50-day SMA (yellow) at $7.37.