Chainlink (LINK) is currently facing significant challenges as its value has plummeted by approximately 40% this year, leading to a broader market structure shift that has hindered the altcoin’s ability to regain bullish momentum. Despite occasional relief rallies, LINK’s price reflects a market characterized by cautious sentiment and weak buyer engagement.
Technical indicators across various timeframes paint a concerning picture. The Money Flow Index (MFI) reading of 43.82 indicates persistent capital outflows, sitting below the neutral threshold of 50. This suggests a lack of accumulation and ongoing hesitation among buyers, leaving LINK at risk of further range compression or renewed selling pressure if market sentiment deteriorates.
The Relative Strength Index (RSI) also mirrors this lack of conviction, with a current reading of 48.70. Although not oversold, the RSI’s inability to reclaim the neutral level of 50 further emphasizes a market lacking bullish momentum, where any price rallies appear to be corrective rather than indicative of a new trend.
Currently, LINK is consolidating below a crucial resistance zone between $12.80 and $13.00—a range that previously served as key support before the recent breakdown. The failure to reclaim this level maintains a short-term bearish bias, as selling pressure continues to dominate. Immediate support is observed around $11.80 to $11.60; if LINK breaks decisively below this range, it could plunge toward the psychological level of $11.00.
On the daily chart, Chainlink’s price continues to move within a descending channel, having broken through several key support levels. Presently priced at $12.39, the token signals further downside potential. The Awesome Oscillator (AO) confirms this bearish sentiment, as it displays green histogram bars in negative territory, signaling weak bullish momentum as buyers slowly exit the market. Meanwhile, the Bull Bear Power (BBP) indicator also shows red bars, reinforcing the seller dominance.
The Fibonacci retracement levels reveal further insights into Chainlink’s price trajectory. Trading at $12.44, LINK is positioned just above the critical support zone at $11.58. A sustained break below this level could set the stage for deeper losses. In contrast, if Chainlink manages to reclaim the immediate resistance at $15.47, it may signal the potential onset of a bullish reversal.
In summary, Chainlink remains in a precarious position, struggling to overcome psychological resistance levels and showing signs of waning demand from buyers. Without significant positive momentum or a reclaim of critical levels, the token is likely to continue facing downward pressure in the forthcoming sessions.
