Chainlink continues to face downward pressure as its recent downtrend extends into the new week, despite a slight recovery that has nudged the token back toward the $12.80–$13.00 range. Market sentiment remains cautious, characterized by a broader risk-off mood and weak participation in derivatives. This environment has left traders hesitant to make strong directional moves, pushing the asset into a critical consolidation phase.
In recent trading, aggregated open interest declined from above $227 million to approximately $226.3 million during this downturn. This drop in open interest indicates that traders have been closing positions, rather than adding new ones, a typical response aimed at risk reduction amid volatility. Following a minor price recovery, open interest has stabilized, suggesting a lack of new bullish conviction among traders, who seem to be opting to remain on the sidelines. Without an increase in open interest, any upward momentum for Chainlink is likely to be limited.
Short-term sentiment hinges on the interaction between open interest and price changes. An increase in open interest alongside price gains could signal the accumulation of long positions and increasing bullish interest, while a further decline in both metrics would reinforce the prevailing bearish sentiment.
Chainlink’s price recently stood at $12.89, reflecting a 2.58% rise in the past 24 hours according to BraveNewCoin. The token holds a market capitalization of $9 billion, with a circulating supply of 696.8 million units, placing it as the 19th largest cryptocurrency. Daily trading volume is reported near $650–$657 million, showcasing reasonable liquidity amid the broader downturn. The recent price increase offers some short-term relief, yet the medium-term trend remains bleak. The token is trading well below its recent highs and significantly under the critical $19.53 level that has transitioned from support to resistance, presenting ongoing challenges for bullish traders.
Technical indicators show continued weakness. The MACD remains below the signal line and hovers near zero, with its histogram fluctuating between small positive and negative values—indicating stagnant momentum. The absence of a bullish crossover signals a neutral to bearish bias. Moreover, the Relative Strength Index (RSI) is currently at 36, just above oversold territory. Although this suggests waning buying pressure, it also allows for the potential for a relief bounce if the RSI can rebound above 40 in subsequent sessions. Traders are urged to remain vigilant, as extended periods within the 30–40 RSI range often coincide with prolonged downtrends.
At present, Chainlink trades within a constrained range between $12.60 and $13.00, with no evident strong catalysts on the horizon. A breakout above $13.40 could signal a shift towards bullish momentum, particularly if coinciding with rising open interest. Conversely, if the price drops below $12.50, the token could face deeper downside targets around $11.80. For the time being, the outlook remains neutral to bearish, necessitating a significant shift in momentum for any sustained recovery to materialize.
