Chainlink (LINK) at a Critical Crossroads: Will it Favor $15 or $10?

Chainlink (LINK) is currently facing a significant challenge in its price movement, with a recent decline of 2.05% in just 24 hours. After peaking at $12.56 earlier in the day, it has since retraced to around $12.29. The market cap sits at $8.7 billion, and trading volumes are notably up. The key question remains: will LINK break through its resistance or fall to the support level?

Key Takeaways

Chainlink (LINK) has decreased in value by 2.05% in the last 24 hours.
The price fluctuated between $12.56 and $12.10 before stabilizing at $12.29.
The current market cap of Chainlink is $8.7 billion with a trading volume of approximately $424.44 million.
LINK may face bearish pressures that could test its support at $12.24, or it could rise to resistance around $12.34.

Current Market Overview of Chainlink

In the realm of altcoins, Chainlink (LINK) has seen a decrease of 2.05% over the past day. Earlier in the morning, LINK reached a high of $12.56. Nonetheless, due to mounting bearish pressure, the market saw a pullback to a low of $12.10. At the time of writing, Chainlink is trading at $12.29.

With a market capitalization of $8.7 billion, the asset's daily trading volume has surged by over 28.27%, edging close to $424.44 million. According to Coinglass data, there have been liquidations totaling $2.18 million worth of LINK during this period.

The current downward trend in LINK’s price might lead to a challenge of the $12.24 support level. If this support fails to hold, it could initiate a death cross, potentially driving the price down to $12.19 or lower. On the other hand, if the market shifts towards bullish momentum, Chainlink could rebound to the resistance level around $12.34, with further upside corrections possibly pushing prices up to $12.39.

Technical Indicators Suggest Bearish Trends

The Moving Average Convergence Divergence (MACD) for Chainlink shows both the MACD line and the signal line lying below the zero mark, indicating bearish momentum. Typically, any recovery in this context tends to be short-lived unless the MACD rises above zero.

LINK chart (Source: TradingView)

Additionally, the Chaikin Money Flow (CMF) indicator has a reading of -0.21, illustrating strong selling pressure in the LINK market. This indicates that money is exiting the asset, signaling a trend towards distribution rather than accumulation. If this trend continues, a downtrend is likely to persist.

The sentiment in Chainlink's market appears oversold, as evidenced by the daily Relative Strength Index (RSI), which stands at 29.36. Intense selling pressure is evident, which may result in a short-term bounce. Furthermore, the Bull Bear Power (BBP) for LINK is at -0.45, reflecting bearish dominance. Should this figure remain negative, it is probable that momentum will continue to gravitate towards the downside.

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