- Chainlink is trading at around 17.29 with poor volume and reserved market sentiment.
- Analysts are bullish above $16.39 but risk dropping to $13.35 should the momentum wane.
- RSI at 41.85 and the MACD cross indicate slight recovery in the declining trading volume.
Chainlink (LINK) is currently trading at $17.29, up 5.15% in the last 24 hours. Despite this rebound, daily trading volume declined 26.96% and is currently at $872.14 million, indicating less interaction.
Source: CoinMarketCap
The token’s performance over the week is also negative, having declined by 2.88% over the past seven days. Traders seem cautious with short-term recovery optimism but a decaying market and weak momentum.
Analysts suggest that the wider market is still indecisive, as Chainlink is struggling to find a clear trend. The price recovery has not achieved significant momentum, and the buying pressure appears to be constrained. Any move below key support would negate momentum and change it back over to the sellers.
Chainlink Bulls Defend $16.39 Support Zone
Crypto analyst More Crypto Online highlighted that the bullish case is still valid as long as LINK is trading above $16.39. This region has been a consistent supporting one and kept this region from further decline. However, resistance between $17.65 and $18.45 persists in containing upward moves.
Source: X
A strong rejection from this zone could confirm a new Z-wave correction phase that could see the price moving closer to a level of $13.35 if the momentum breaks down further.
Moreover, another analyst, Man of Bitcoin, mentioned that Chainlink has previously been rejected impulsively from this area; it could be indicative of the wave-2 to the downside starting, which could drive its bottom.
If this fails, another downward sequence may start, which indicates that the corrective phase is not over yet. A sustained decline lower than $15.69 could pave the way for further pullback.
Source: X
Also Read: Cardano (ADA) Faces Bearish Pressure as Price Tests Key $0.60 Support Level
RSI and MACD Show Weak but Improving Momentum
The Relative Strength Index (RSI) is at 41.85, which is in slightly bearish territory, signaling weak momentum and potential for recovery. The MACD indicates a narrow bullish crossover of the MACD line located at 0.105 and the signal line located at -0.919, indicating early signs of a momentum shift.
Source: TradingView
Open Interest Rises as Trading Volume Declines
CoinGlass data shows that the trading volume is down 22.25% to $1.52 billion. However, its open Interest increased 5.09% to $681.27 million. The OI-weighted funding rate is at 0.0069%, indicating mild optimism among leveraged traders. The separation of declining volume and increasing positions is indicative of cautious accumulation instead of general enthusiasm.
Source: CoinGlass
If Chainlink breaks above $18.45, it could lead to a break to higher resistance levels. Conversely, a fall below $16.39 is a potential continuation of the recent downward trend. The market is at a critical point in the turning and waiting for confirmation of the next major move.
Also Read: Gen Z Leads India Crypto Revolution With 37.6% Investor’s Share
