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  • Chainlink price failed to overcome the resistance barrier at $35 for the third time in a row.
  • A decisive close above $37.40 could seal the bullish fate, but a breakdown of $30 could also trigger a downtrend.
  • Transactional data shows little to no resistance ahead for LINK, supporting an optimistic outlook.

The Chainlink price is at crossroads as buying pressure slows down near a crucial supply barrier.

Chainlink price remains indecisive

The Chainlink price has seen three major upswings  fail to cross above the $35 level for the last two months creating a series of highs. Now, the oracle token faces a similar fate as the recent jab to overthrow this barrier has failed and reveals that a minor pullback is imminent.

When the swing highs and lows formed from January 22 are connected using trend lines, LINK shows the formation of an ascending triangle. This pattern has a bullish bias and forecasts a 50% upswing to $52.88, determined by adding distance between the first swing high and low to the triangle’s base at $35.

Although indecisive at this point, if the Chainlink price manages to breach the upper trend line, an upswing seems likely. However, a continuation of the selling pressure could lead to a downtrend.

A secondary confirmation will arrive If the LINK price surges 6.75% and produces a decisive close above the Momentum Reversal Indicator’s (MRI) breakout line at $37.40. The bullish fate will be sealed if the oracle token conquers the subsequent breakout line at $39.28.

If this were to happen, $46.06 and $48.90 could serve as crucial levels for the bulls to pause before hitting the intended target at $52.88.

LINK/USDT 1-day chart

LINK/USDT 1-day chart

Supporting the Chainlink’s entry into price discovery mode is IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, which shows little to no resistance ahead.

In fact, a short-term buying pressure could be enough to topple the supply barriers. Therefore, a potential spike in buying pressure could trigger an upswing.

Chainlink IOMAP chart

Chainlink IOMAP chart

The Chainlink token supply held on exchanges has seen a start reduction, suggesting that investors are not inclined to sell at the current price levels. This metric saw an 11.54% decrease from 16.02% to 14.17% since February 22,  that investors are optimistic about the Chainlink price’s bullish potential.

Chainlink supply on exchanges as % of total supply chart

Chainlink supply on exchanges as % of total supply chart

Despite having meager resistance, if the bulls never band together, an upswing will not occur. A breakdown of the immediate support barrier at $32.03 will signal the presence of bears. If this were to happen, IOMAP cohorts reveal 14,500 addresses that purchased 18.73 million LINK here will be “Out of the Money,” increasing the sell-side pressure.

In such a case, a 6% slide that results in a decisive close below $30 will trigger a much steeper corrective phase for the Chainlink price.

The 50 Simple Moving Average on the daily chart at $29.15 could deter this downswing. However, if this level is shattered, LINK might head toward the ascending triangle pattern’s hypotenuse at $26.77.

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