Analyzing Chainlink's Price Decline: What the $15.44 Breakdown Indicates for the Future

Chainlink's recent breach of the $15.44 support level signals significant bearish pressure in the market. Despite the emergence of on-chain accumulation and strategic partnerships in the finance sector, sellers have remained dominant, resulting in a substantial price decline. This article delves into the details of Chainlink's price movements, underlying trends, and what to expect moving forward.

Key Takeaways

Continued selling pressure persists despite on-chain accumulation and partnerships in traditional finance, indicating a strong seller presence.
A significant support level at $15.44 was breached after a downturn in the previous week's trading, closing at $13.4.
Chainlink (LINK) experienced a notable 100% increase in daily trading volume, rising 2.91% to $14.13 on November 17.
Meanwhile, Bitcoin (BTC) experienced a slight increase of 1.95%, but both movements lacked a supportive bullish environment.
Recent analyses indicate that while Chainlink’s short-term price bounces are possible, they are likely to be countered by sellers.
The loss of the $15.45 support has transitioned the weekly market structure into a bearish trend, along with the loss of long-term trend support.

Chainlink under stress - Analyzing the implications of last week's price drop

Chainlink Bears Maintain Control, But There Are Signals to Watch For

Chainlink 1-week Chart Source: LINK/USDT on TradingView

The recent surge in price from $10.94 to $27.87 earlier this year revealed important Fibonacci retracement levels that correspond with critical weekly swing zones, including the crucial $15.44 support level.

On the close of the previous week’s session at $13.73, Chainlink (LINK) dropped below two significant long-term support levels: $15.44 and $14.56. The latter was a key Fibonacci retracement zone that bulls failed to protect.

The On-Balance Volume (OBV) indicator illustrates that selling pressure has remained consistent over the past months, with no indications of a bullish recovery on the horizon.

Short-term Price Bounces May Encounter Challenges

Chainlink 1-day Chart Source: LINK/USDT on TradingView

The daily chart reveals a distinctly bearish structure for Chainlink. A bearish order block, positioned between $15 and $16.6, forms a supply zone that is likely to trigger additional selling if prices retest this area.

Potential downside targets include $12.7, a critical support level from July, and $10.94, representing the recent weekly swing low.

Disclaimer: The insights provided in this article do not serve as financial, investment, trading, or any other type of guidance and should be interpreted solely as the author’s opinion.