Chain Link (LINK), one of the major players in the decentralized finance space, is currently facing increased bearish pressure in the market. As bearish pressure LINK momentum continues to build, key technical indicators are signaling the potential for further loss towards the critical support level at $12 for the cryptocurrency. With the current price movement, Chainlink could continue to decline, testing lower support levels in the near future, unless there is a significant change in market sentiment.
This article provides an in-depth analysis by assessing the current market sentiment surrounding Chainlink, examining key technical indicators, and identifying critical support levels along with their impact on LINK price stability.
At the time of writing, the company’s market capitalization was over $7.7 billion, with trading volume exceeding $243 million. LINK shares are down 3.75%, trading at around $12.82. Over the past 24 hours, the asset market capitalization and trading volume have fallen by 3.72 and 1.67, respectively.
Assessing the current market sentiment around Chainlink
Given the asset’s price volatility, it seems that the current market sentiment around LINK is still negative. The price is currently actively trading below the 100-day elementary moving average (SMA), heading towards $12 on the 4-hour chart. This suggests that bearish the trend may continue. With more selling pressure, this entry indicates that Chainlink is likely to continue falling as long as it remains below the SMA.
The Relative Strength Index (RSI) 4-hour signal line has fallen below 50% into the oversold zone. This suggests that selling pressure is increasing and the asset may experience further downside towards the $12.44 level.
On the 1-day chart, LINK’s market sentiment is also negative, with the price trading below the 100-day SMA. LINK is trending lower, heading towards the $12.44 support level, after forming two bearish candles. If the price breaks below this key level, it could signal further bearish momentum and potentially push the price towards other support levels.
Finally, the 1-day RSI fell below 50%, further supporting the possibility of further price declines. This decline suggests that bear pressure is rising because sellers are still vigorous and influential in the market. The fact that sellers are still vigorous means that LINK will likely continue to decline.
Identifying critical support and resistance levels
Chainlink is currently on a bearish path, heading towards the $12.44 support level. If the price breaks and closes below the $12.44 support level, it could continue its bearish move towards the next support range at $11.10 and possibly even lower levels.
However, if the digital asset encounters resistance at $12.44 and fails to break below, it could lead to a potential move higher, reaching the resistance level of $15.25. If the price rises above this level, profits could occur and its target could be the resistance at $17.96 and beyond.
Featured image is from YouTube, chart is from Tradingview.com
