Chainlink (LINK), a prominent player in the decentralized finance sector, is currently experiencing a surge in bearish pressure within the market. The ongoing bearish momentum suggests a potential downward trend towards the critical support level at $12 for the cryptocurrency. This downward movement could persist, leading to further testing of lower support levels in the near future, unless a significant shift in market sentiment occurs.
As of the latest data, Chainlink had a market capitalization exceeding $7.7 billion and a trading volume surpassing $243 million. The asset was observed to be down by 3.75%, with a trading price hovering around $12.82. Over the past 24 hours, both the asset’s market capitalization and trading volume have declined by 3.72 and 1.67, respectively. These figures indicate a prevailing negative market sentiment surrounding Chainlink.
The current price of the asset is actively below the 100-day Simple Moving Average (SMA) on the 4-hour chart, approaching the $12 mark. This positioning suggests a continuation of the bearish trend, with the likelihood of further decline as long as the asset remains below the SMA. Additionally, the 4-hour Relative Strength Index (RSI) signal line has dipped below 50% into the oversold zone, indicating growing selling pressure and a potential move towards the $12.44 level.
On the 1-day chart, the negative market sentiment persists, with Chainlink trading below the 100-day SMA and showcasing a bearish trend towards the $12.44 support level. The formation of two bearish candlesticks further supports the potential for a downward movement if the price breaches this crucial level. The RSI on the 1-day chart has also dropped below 50%, reinforcing the likelihood of further price decline.
Chainlink is currently on a bearish trajectory towards the $12.44 support level. A breakthrough and closure below this level could extend the bearish movement towards subsequent support ranges, such as $11.10 and potentially lower thresholds. Alternatively, if Chainlink encounters resistance at $12.44 and fails to breach it, there may be a chance of an upward surge towards the $15.25 resistance level. Further positive movement could target the $17.96 resistance point and beyond, if the price surpasses the initial resistance.
The bearish outlook for Chainlink (LINK) in the decentralized finance space indicates a challenging path ahead, with key technical indicators and market sentiment pointing towards further downward movement. Traders and investors should carefully monitor the evolving situation to make informed decisions regarding their positions in Chainlink amidst the current market conditions.
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