Chainlink has been one of the top oracle networks in the crypto space. It continues to play an important role in both decentralized finance (DeFi) and connecting real-world assets to blockchains, but the price of its token remains under pressure due to the overall weak market. At press time, the coin is trading at $8.58 with an decrease of 1.54% over the past 24 hours.
Chart Signals Weak Structure
On the daily TradingView chart, LINK is still trading within a long-term downtrend based on the price being below most key moving averages and in the bottom half of the Bollinger Band range.
The price around the $8.47 area appears to be a major level of support based upon this level being the location of previous reaction lows in price.
A clean break of this level could lead to much heavier selling, making its way down into the $7.40 to $7.50 range.
If the price does not break below this level and instead bounces, LINK’s price could attempt to re-establish itself at $8.74 first, then possibly $9.02 if enough momentum is generated. However, the declining OBV indicates there is very little buying interest currently present.
Also read: Chainlink Gains Regulated Futures Market on CME Exchange
Traders Eye $8.47 Support
Crypto analyst Ali Charts recently stated on his post on X that $8.47 is the “key level” for Chainlink. His analysis indicates that if the price can hold above this support level, the potential rebound targets of $8.74 and $9.02 remain on the table.
Therefore reiterating how important this price level is for short-term traders who are watching LINK closely.
To sum up, LINK appears to be at a key technical point in time. While the larger trend remains down, there’s still a lot of room for LINK to pull back if $8.47 does not hold up .
A significant rebound when it does and/or if it does on rising volume may encourage people to resume buying LINK.
Given how bearish the overall market conditions are, until we see LINK break upward with a sufficient amount of buying volume, traders should exercise caution as there is still downside risk for LINK in the near future.
Also read: Chainlink (LINK) Rises 5% as Momentum Signals Breakout Towards $12
