Chain link (LINK) is one of the major players in decentralized finance and is currently experiencing increasing bearish pressure in the market. LINK’s bearish momentum It continues to build, and key technical indicators are signaling further losses towards the critical $12 support level for the cryptocurrency. With this current price action, Chainlink could continue to decline, testing lower support levels in the near future, unless there is a significant reversal in market sentiment.
In this article, we provide an in-depth analysis by assessing the current market sentiment for Chainlink, examining key technical indicators, identifying important support levels, and determining their impact on LINK’s price stability.
At the time of writing, the market cap was over $7.7 billion and the trading volume was over $243 million. LINK was down 3.75%, trading at around $12.82. In the last 24 hours, the asset’s market cap and trading volume decreased by 3.72 and 1.67, respectively.
Current Market Sentiment Rating Centered on Chainlink
Considering the price action of the asset, the current market sentiment surrounding LINK still appears to be negative. The price is currently trading actively below the 100-day simple moving average (SMA) and is heading towards $12 on the 4-hour chart. This means Bear-like The trend could continue. With more selling pressure, this position indicates that Chainlink is likely to go lower as long as it remains below the SMA.
The 4-hour RSI signal line has successfully broken below 50% and entered the overheated selling zone, indicating that selling pressure is building and the asset is likely to fall further to the $12.44 level.
The market sentiment for LINK on the 1-day chart is also negative, with the price trading below the 100-day SMA. LINK is in a bearish trend after forming two bearish candlesticks and moving to the $12.44 support level. If the price breaks below this key level, it could signal additional bearish momentum and drive the price to other support levels.
Finally, the 1-day RSI also fell below 50%, which further supports the possibility of further price declines. This decline suggests: downward pressure It is rising because sellers are still active and influential in the market. The fact that sellers are still active means that LINK is likely to continue to decline.
Identify important support and resistance levels
Chainlink is currently on a bearish path, heading towards the $12.44 support level. If the price breaks the $12.44 support level and closes below it, it could continue its bearish move towards the next support area of $11.10 and lower.
However, if the digital asset hits resistance at $12.44 and fails, break Below, a potential uptrend could occur, reaching the $15.25 resistance level. If the price rises above this level, it will be benefit It could occur by targeting the resistance level above $17.96.
Featured image from YouTube, chart from Tradingview.com