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02/08/24
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Chainlink Faces Bearish Pressure: Support Level at $12 in Jeopardy
Chainlink (LINK) is currently experiencing significant bearish pressure within the decentralized finance market. The cryptocurrency’s continued downward trend has raised concerns, particularly as key technical indicators suggest a potential decline toward the important support level of $12. Without a marked change in market sentiment, Chainlink may face further losses in the near term.
At present, Chainlink’s market capitalization stands at over $7.7 billion, with a trading volume exceeding $243 million. Recent performance indicates a 3.75% drop in price, with LINK trading around $12.82. Moreover, in the last 24 hours, both the asset’s market cap and trading volume have seen declines, further underscoring the current market challenges faced by LINK.
Market sentiment surrounding Chainlink appears to be predominantly negative at this time. The cryptocurrency is trading below the 100-day Simple Moving Average (SMA), signaling a bearish trend as it approaches the $12 threshold on the 4-hour chart. Such positioning suggests that unless there is a reversal in sentiment, Chainlink is likely to drop further given the increasing selling pressure.
In addition, the 4-hour Relative Strength Index (RSI) has dipped below the 50% mark and entered the oversold region, indicating escalating selling activity that may drive the asset towards the $12.44 level. Observations on the 1-day chart reinforce this negative sentiment as LINK remains beneath the 100-day SMA, having produced two bearish candlesticks in its current trajectory toward $12.44. A closure beneath this critical support level could lead to further declines toward even lower thresholds.
Identifying critical support and resistance levels is essential in navigating LINK’s price movement. As it trends downward toward the $12.44 support, any breach could prompt a continuation to the subsequent support range of $11.10 or lower. Conversely, if LINK manages to stabilize around the $12.44 mark, it could stimulate a rally towards the $15.25 resistance level, and potentially reaching higher targets, such as $17.96, should upward momentum prevail.
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