- Chainlink is showing a strong bullish structure after support at $6.50.
- A V-shaped recovery pattern is attracting immense volume as bulls eye $8.15.
- LINK price is sitting above a strong support zone highlighted by the IOMAP on-chain pattern at $6.74.
Chainlink price is pushing to recoup losses incurred after being rejected from highs around $8.15. Buyer congestion at $6.50 allowed buyers to take control while aiming for a sizable bounce. LINK price opens the US session Friday in the green while trading hands at $7.22.
Chainlink price builds on this robust fundamental support to mark $8.15
Chainlink has been nurturing a V-shaped recovery pattern since embracing support at $6.50. The term V-shaped refers to a strong downward trend over a period followed by a rapid recovery. Traders looking for trade opportunities with this pattern should confirm a spike in volume before going all-in on LINK. Its four hours reveal strong volume indicators, which may help the token sustain the move to $8.15.
The 200-day simple moving average (SMA) (purple) must hold to give buyers enough time to raise demand. It is worth mentioning that a buy signal from the Moving Average Convergence Divergence (MACD) indicator cements the bullish outlook for Chainlink price. However, the MACD needs to break into the positive region for the LINK price to comfortably close the gap at $8.15.
LINK/USD four-hour chart
According to information from IntoTheBlock’s IOMAP model, the odds may remain in favor of the bulls, at least in the short term. Around 7,650 addresses previously bought 290 million tokens between $6.63 and $6.83. Investors in this range will likely hold their positions in hopes that LINK price will stabilize above its target at $8.15.
Chainlink IOMAP Model
On the bright side, Chainlink’s price trajectory at $8.15 looks relatively smooth except for a low hurdle at $7.34. Thus, a slight increase in buying pressure could reinforce the V-shaped recovery.
Supply distribution chain
Previously sidelined investors seem to be making a comeback to the market packing 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 move to $8.15 would be a matter of when, 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.