Market analysis indicates a period of compressed price action in the cryptocurrency sector, with participants adopting a cautious stance. Chainlink (LINK) has been particularly affected, trading under pressure due to a sharp sell-off that has pushed its prices beneath the $9.00 threshold.
Recent insights from a well-known analyst on social media platform X highlight that Chainlink’s price movements have stalled, concluding the day with little to no change. The asset continues to linger below a downward-trending resistance line, signifying an ongoing bearish sentiment. Efforts to stabilize have thus far failed to produce clear signs of a bullish reversal.
The analyst connects Chainlink’s performance to broader trends within the cryptocurrency market, asserting that its recent fluctuations are influenced primarily by Bitcoin’s movements. This underlines the vulnerability of altcoins like LINK, which remain susceptible to overarching market trends rather than displaying strength on their own.
From a key level perspective, resistance for Chainlink is pegged at $9.20, with the asset needing to reclaim this level to shift short-term momentum positively. If successful, potential price tests could occur around previous supply levels of $9.50 and $10.20. Conversely, the critical support resides at $8.25; a sustained drop below this mark could confirm the continuation of the current downtrend.
Data from BraveNewCoin shows Chainlink trading around $8.84, reflecting a modest gain of just 0.06% in the last 24 hours. Price activity during this period has been confined between $8.48 and $8.97, indicating a tight consolidation phase following recent volatility. With a trading volume of $362.62 million and a market capitalization of $6.26 billion, capital inflows appear selective, and attempts at rebounds have generally met selling pressure.
Despite holding above the $8.50 mark, which signals some short-term stability, Chainlink’s current price remains significantly off its historical high of $52.70 — a valuation reached in May 2021. Presently, the token trades about 83% lower than that peak, underscoring the prevailing downtrend.
Technical indicators paint a challenging picture for Chainlink. On TradingView, the daily chart reveals that the asset recently decreased by 3.83%, concluding the session at approximately $8.495 after failing to maintain higher prices during intense selling. The volume during this session surged to 1.04 million tokens, signifying aggressive distribution.
The current technical landscape shows high volatility with an oversold Relative Strength Index (RSI) at around 29, suggesting substantial downside pressure. While this indicates a potential for a reversal, no definitive signals for a trend change have emerged. The MACD remains below its signal line, reflecting negative momentum, although it shows signs of contraction in the histogram.
Chainlink’s trajectory continues to trend downward, reinforcing a pattern of lower highs and lower lows since the asset was unable to hold above the $15 level late last year. The psychological support is now positioned at $8.00, while short-term resistance lingers near the $9.00 mark, consolidating the sentiment surrounding LINK as it navigates through uncertain market conditions.
