Chainlink Price May Be Due for Bullish Reversal as Sellers Lose Momentum

Chainlink's price has been trading below its 200-day moving average for some time now, but recent signs suggest that the altcoin may be due for a bullish reversal.

The altcoin's price broke below an ascending trend channel in late May and subsequently fell to February's low of $7.265, only to face a small rejection from sellers.

This is the third time the support level at $7.20 has been tested, and analysis suggests that sellers are losing steam. The momentum indicator is declining, and MACD bars are becoming faint, indicating exhaustion among bears.

Furthermore, aggregate liquidations have reduced significantly, which can be a sign of reduced volatility and a potential expansion in the market.

In addition to these technical indicators, on-chain metrics are also showing signs of a potential bullish reversal. Chainlink Spot ETFs have turned positive again after experiencing their first daily outflow, while the altcoin's reserve has reached a new peak, accumulating 593,088 LINK for over $4.60 million.

However, it is essential to note that Chainlink still needs to hold above the $7.20 zone to confirm this potential reversal.