Chainlink (LINK) has entered a critical phase as the cryptocurrency faces mounting selling pressure after failing to breach the $18 resistance level. The digital asset has experienced a sharp 16% decline, raising concerns about potential further downside in the short term. Similar to Bitcoin’s recent pullback from $107K, LINK’s technical structure shows signs of deterioration.
Technical Analysis Points to Further Downside Risk
Prominent crypto analyst Ali Martinez has highlighted several concerning technical factors in LINK’s current market structure:
- Sharp rejection at the $18 resistance zone
- Break below the 200-day EMA at $16
- Increased selling volume during recent declines
- Loss of critical support levels near $15
The current support zone between $14.80-$15.00 represents a crucial battleground for bulls and bears. A failure to hold these levels could trigger an accelerated move toward the $13.20 support, with the psychological $10 level representing the next major demand zone.
Market Conditions and Recovery Scenarios
For LINK to regain bullish momentum, several key technical levels must be reclaimed:
- Immediate resistance at $16 (200-day EMA)
- Critical resistance zone at $17.50-$18.00
- 200-day SMA at $17.79
FAQ: Chainlink’s Current Market Position
What caused Chainlink’s recent price drop?
The decline was triggered by a rejection at the $18 resistance level, combined with broader market uncertainty and increased selling pressure.
What are the key support levels to watch?
Primary support lies at $14.80-$15.00, followed by $13.20, with the ultimate support target at $10.00.
When could a recovery begin?
A sustained close above the 200-day EMA ($16) would be the first signal of potential trend reversal, with confirmation coming from a break above $18.
Traders should maintain caution in the current environment, as LINK’s price action suggests the possibility of further consolidation before any sustained recovery attempt.