- Chainlink shows a rebound, but the broader market trend remains weak.
- Price trades close to the crucial micro support protection zone.
- Upside movements stay corrective instead of starting an impulsive rally
- Indicators favor sellers while market sentiment stays cautious overall.
Chainlink remains on a downward trajectory despite a short rebound in the recent session. Over the last 24 hours, LINK is up 2.36%, yet the broader outlook stays weak as the token still shows a weekly decline of 4.36% overall.
At the time of writing, LINK is trading at $12.39, reflecting improving participation. The token records a 24-hour volume of $494.54 million, up 7.66%, while the market capitalization stands at $8.78 billion, rising 2.26%, indicating short-term strength despite broader bearish pressure.
Also Read: Chainlink (LINK) Shows Bullish Momentum with $16 Resistance in Focus
Price Retests Critical Chainlink Support Zone
Chainlink is testing the strong micro support level of wave (2) once again, and this level is still defined from $11.95 to $12.23. The fulfillment of this support maintains the defense line strong, and breaking below the strong support of $11.95 will make it weaker and will make way for further downside action.
According to Crypto Analyst @Morecryptoonl, any upside from this zone will likely stay corrective, forming parts of a broader wave four move rather than a new impulsive rally. Targets for the first levels of recovery may be pegged at $12.80 – $13.20, $13.70 – $14.10, and even stronger at $14.40 – $14.60 levels.
A failure to uphold the current micro range would invalidate the constructive scenario, while a breakout below $11.95 would see $11.60 come into play as the significant support level, or a further push would see a return toward the deeper regions of $11.30-$11.00 until market stabilization is observed in the broader corrective market structure phase.
Indicators Signal Ongoing Bearish Market Pressure
Currently, the RSI for the weekly chart is seen moving around the level of 38, below the middle level of 50, which indicates a lack of buying power and persistent bearish pressures. This suggests that the sellers are still in control of the market. This would remain so until the RSI breaks above the middle level.
The MACD indicator also supports the bearish view, as the MACD line remains below the signal line and shows increasingly red bars on the histogram. This is an indication that the negative momentum is still building. Until the histogram begins to reduce and a bullish crossover is seen, the downward pressure can be expected to continue.
Also Read: NCFX Partners with Chainlink to Bring Regulated FX Benchmarks Onchain
