Chainlink (LINK) has entered a downward trend, with a 4.26% drop and breaking through support levels at $14.2 and $14.17, currently settling at $13.8.
Despite recent declines, the LINK/USDT 4-hour chart hints at a potential bullish breakout from the current downward channel, targeting support between $12 and $13.
The RSI is in a neutral to oversold condition, suggesting potential for accumulation at the $13 level, while the MACD remains below the signal line, indicating caution.
Chainlink (LINK) opened the trading day in the red, reflecting a broader downtrend as it broke through several key support levels. The recent price action has pushed LINK down by 4.26%, moving past strong support points at $14.2 and $14.17, and it is currently stabilizing around $13.8.
Chainlink Market Sentiment and Technical Analysis
Investors and bulls are closely monitoring the price as it seeks firmer support in the $12 to $13 range. The LINK/USDT 4-hour chart suggests that despite the downtrend, there could be room for a bullish reversal. The downward channel pattern and the potential trend reversal if the price finds a strong footing indicate this possibility.
We advise traders to closely monitor the $13 level, as any significant breakout, whether upward or downward, could trigger rapid price movements in that direction. For trend traders, entering between $12.08 and $13 with a vigilant approach to stop-loss settings after a confirmed breakout could be a strategic move.
LINK’s Fundamentals and External Factors
Despite the volatile market conditions and a general downturn in crypto assets like Bitcoin, Chainlink’s fundamentals remain robust.
Recently, the Hong Kong Dollar Stablecoin (HKDR) selected Chainlink as its technological partner for development and management. Additionally, a report by Intotheblock highlighted a negative net flow of LINK from exchanges, suggesting signs of accumulation among holders.
This blend of technical setups and strong fundamental developments presents a mixed but cautiously optimistic outlook for Chainlink as it navigates current market challenges and opportunities for reversal.