- LINK drops 20.64% to $17.79, but trading volume surges 323.51% to $4B, showing strong investor activity.
- Analysts warn of heavy bearish pressure, as LINK and LINK/BTC hit record lows, facing key $19.80 resistance.
- RSI is near 32.71, and MACD stays negative, signaling continued selling momentum with weak signs of recovery.
Chainlink (LINK) is currently trading at $17.79, which represents a 20.64% decrease in the last 24 hours. The trading volume has been bullish, rising up 323.51% and currently standing at $4 billion. This surge indicates that the market is active even in the declining price.
Source: CoinMarketCap
In the previous week, LINK experienced a decline in value of 20.21%. The steady decline is an indication of the persistent selling pressure in the market. Nonetheless, the high volume of trading records that the asset is heavily actively pursued by investors.
LINK Struggles at $19.80 Resistance Level
Crypto analyst CryptoWZRD highlighted that the market sentiment over LINK is still highly bearish. Analysts emphasized that both the LINK and LINK/BTC pairs had their worst trading day in history.
It is now important to have a retest of the resistance at approximately around its $19.80 level. Without breaking above this point, further decreases may occur. The successful breakout, however, may portend a reversal of the trend.
Source: X
In addition, another analyst, AltCryptoGems, mentioned that LINK was in a falling wedge trend. This technical structure generally indicates a breakout or a continuation of the downtrend. After facing rejection at resistance levels, LINK is now consolidating near significant support. An escape out of this wedge may trigger a reversal of the trend, although a reversal of support may cause the price to sink further.
Source: X
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RSI and MACD Indicate Continued Bearish Momentum
The Relative Strength Index (RSI) is at 32.71, approaching the oversold area. The RSI had been approximately 46.20 in the past, indicating that the upward move has already subsided. A reading of less than 30 on RSI can often be an indicator of a short-term bounce. Although the prevailing level of RSI suggests that the selling side continues to prevail, any possible recovery would demand that levels break above 40.
Source: TradingView
The Moving Average Convergence Divergence (MACD) also supports the bearish picture. The MACD line is at -0.407, the signal line at -0.385, and the histogram at -0.792. This adverse divergence points to the fact that selling pressure remains strong. Should the MACD lines begin to converge in the next few days, they could indicate slowing bearish momentum.
The short-term prospects of the token are questionable. The indicators depict bullish trends, with no indicators of a recovery being seen clearly yet. The asset experiences critical support zones, and a loss of them would push cryptocurrency to $16. Nevertheless, any breakout above the resistance of $19.80 would result in new bullish gains.
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