Resistance

Chainlink

<a href="https://www.newsbtc.com/chainlink-news/chainlink-capitulate-11-plunge-sign-bottom/" target="_blank" rel="noopener ">Chainlink</a> (LINK), one of the major players in the decentralized finance space, is currently facing increased bearish pressure in the market. As LINK’s bearish <a href="https://www.newsbtc.com/press-releases/bnb-bnb-and-chainlink-link-showcase-increased-momentum-while-investors-find-appeal-in-insanitybets-ibet/" target="_blank" rel="noopener ">momentum</a> continues to build, key technical indicators are signaling the potential for further loss toward the critical support level at $12 for the cryptocurrency. With this current price movement, Chainlink could continue to decline, testing lower support levels in the near future, unless there is a significant reversal in market sentiment. 
This article provides an in-depth analysis by evaluating the current market sentiment around Chainlink, examining key technical indicators, and identifying critical support levels along with their implications for LINK’s price stability. 
As of the time of writing, it had a market capitalization of over $7.7 billion and a trading volume of over $243 million.LINK was down by 3.75%, trading at around $12.82. In the last 24 hours, both the asset’s market cap and trading volume have declined by 3.72 and 1.67, respectively. 
<h2 id="assessing-current-market-sentiment-around-chainlink">Assessing Current Market Sentiment Around Chainlink</h2> 
Considering the asset’s price movements, it seems the current market sentiment around LINK is still negative. The price, currently, is actively trading below the 100-day Simple Moving Average (SMA), heading toward the $12 mark on the 4-hour chart.&nbsp; This suggests that the <a href="https://www.newsbtc.com/news/chainlink/chainlinks-link-outlook-bleak-13-80/" target="_blank" rel="noopener ">bearish</a> trend might continue. With more selling pressure, this position indicates that Chainlink is likely to decline further as long as it remains below the SMA. 
<img loading="lazy" decoding="async" class="size-large wp-image-632654" src="https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.10-AM-1.jpeg?w=860&amp;resize=860%2C382" alt="Chainlink" width="860" height="382" srcset="https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.10-AM-1.jpeg?w=1080 1080w, https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.10-AM-1.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.10-AM-1.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.10-AM-1.jpeg?w=860&amp;resize=860%2C382 860w, https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.10-AM-1.jpeg?w=750 750w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
The 4-hour Relative Strength Index (RSI) signal line has successfully dropped below 50% into the oversold zone. This suggests that selling pressure is growing, and the asset might experience further downward movement towards the $12.44 level. 
On the 1-day chart, LINK’s market sentiment is also negative, with the price trading below the 100-day SMA. LINK is showing a bearish trend as it moves toward the $12.44 support level, having formed two bearish candlesticks. If the price breaks below this key level, it could signal further bearish momentum and potentially drive the price toward other support levels. 
<img loading="lazy" decoding="async" class="size-large wp-image-632661" src="https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.09-AM.jpeg?w=860&amp;resize=860%2C382" alt="Chainlink" width="860" height="382" srcset="https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.09-AM.jpeg?w=1080 1080w, https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.09-AM.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.09-AM.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.09-AM.jpeg?w=860&amp;resize=860%2C382 860w, https://www.newsbtc.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-01-at-10.53.09-AM.jpeg?w=750 750w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
Finally, the 1-day RSI has also dropped below 50%, which further supports the possibility of further price drop. This decline suggests that <a href="https://www.newsbtc.com/news/chainlink-inches-closer-to-18-despite-bearish-pressure-analyst/" target="_blank" rel="noopener ">bearish pressure</a> is rising, as sellers are still active and influential in the market. The fact that sellers are still active implies that LINK will probably continue to decline. 
<h2 id="strong-identifying-critical-support-and-resistance-levels-strong">Identifying Critical Support And Resistance Levels</h2> 
Chainlink is currently on a bearish path, heading toward the $12.44 support level. If the price breaks and closes below the $12.44 support level, it may continue its bearish movement toward the next support range at $11.10 and possibly even lower levels. 
However, if the digital asset encounters resistance at $12.44 and fails to <a href="https://www.newsbtc.com/analysis/link/chainlink-signals-break-14-20/" target="_blank" rel="noopener ">break</a> below, it could lead to a potential upward move, reaching the $15.25 resistance mark. Should the price rise above this level, further <a href="https://www.newsbtc.com/press-releases/koala-coin-klc-the-adorable-addition-to-chainlink-link-cardano-ada-crypto-portfolios-with-potential-for-substantial-gains/" target="_blank" rel="noopener ">gains</a> could occur, targeting the $17.96 resistance point and beyond. 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/LV2SqHO7/" alt="Chainlink" width="2283" height="1265">

Chainlink At Risk: Key Indicators Signal Further Losses To $12

Table of Contents

NewsBTC

Other articles published on Aug 1, 2024

July crypto hacks total $266M, WazirX leads losses

Core Foundation Launches Dual Staking to Enhance Bitcoin Yields

Curve DAO (CRV) soars 11% amid market downturn, Here’ why

Anoma Crypto Venture Funding Seeks $40 Million at $1 Billion Valuation

California DMV Revolutionizes Car Title Transfers With 42M Titles Digitized on Avalanche

El Salvador Proposes Using XRP and Bitcoin to Settle Payments with Russia

Join our free newsletter for daily crypto updates!