Chainlink (LINK) is currently struggling to surpass the $20 price level despite its significant bullish rally. Previously, we noted that $20 could be a target for buyers to take profits after breaking through the $16 resistance level. As profit-taking activities occur around $20, this presents an opportunity for bears to sell LINK for short-term gains, prompting consideration of short-term trading strategies.

The Current Scenario in the Chainlink Ecosystem

Johann Eid, the chief business officer at Chainlink, emphasized that the project's efforts over the past seven years have been leading towards tokenization. Chainlink aims to promote the widespread adoption of blockchain technology globally by providing access to real-world data, off-chain computation, and secure cross-chain interoperability to financial institutions, startups, and developers. This initiative has facilitated transactions exceeding $10 trillion in value, powering applications in banking, DeFi, global trade, gaming, and various other sectors.

Identifying Short Selling Opportunities

Analyzing the LINK/USDT pair on TradingView's 4-hour timeframe reveals a bearish signal: the Moving Average Convergence Divergence (MACD) recently displayed a bearish crossover with red histogram bars below zero. This development suggests a potential shorting opportunity in the near future. Intraday traders may consider shorting LINK from $19 with a target of 13% at the nearest support level of $16.5. Additionally, the Relative Strength Index (RSI) indicates growing selling pressure, dropping below the 50 mark, signaling a willingness among sellers to short LINK if the bearish retracement continues on lower timeframes.

Please note that the information provided in this paraphrased article is for informational purposes only and does not constitute trading, investment, financial, or any other form of advice. It reflects the writer's opinion, and it is essential to conduct thorough research before making any trading or investment decisions.