Chainlink: How to take advantage of LINK as it approaches the crucial $6.3 zone

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

Chainlink has formed a range between the $7.83 and $6.29 levels (yellow) over the past three weeks. The mid-point of the range lies at $7.06, and it has acted as support and resistance for LINK when trading within the range.

Moreover, there is also a horizontal support level at $6.66 which the price has respected. The past few hours of trading showed LINK to drop sharply beneath the mid-range point at $7.06 and retest it as resistance.

Therefore, the range can offer buyers an opportunity to enter a trade if LINK reaches the range lows and begins to reverse.

Source: LINK/USDT on TradingView

In the past three weeks, the RSI has not remained above or below the neutral 50 line, which showed the lack of a strong trend behind LINK. The Directional Movement Index also showed a clear lack of trend, as the +DI, the -DI, and the ADX line have all hovered quite close to the 20 mark.

Another point of interest was how the 39-40 area has been important on the H4 RSI. If it drops below this mark, it would be a signal of strong bearish momentum and could presage a drop to the range lows at $6.3. At the same time, the last time LINK retested the range lows on 25 May, the RSI formed a bullish divergence. This could repeat on lower timeframes to offer an entry to a long position.

Source: LINK/USDT on TradingView

The H1 chart shows the range in sharper relief and highlights the rejection LINK faced at the mid-range. The lower timeframe also highlighted that the bullish market structure flipped to bearish when the price broke beneath the $7.18 mark. The uptrend from the range lows was broken, and