Chainlink Cryptonewsfocus.com
- Chainlink is under rising selling pressure as its recent rally fades, with key support at $13.20 now being tested.
- Bearish indicators and mixed exchange flows suggest further downside is possible unless Bitcoin rallies to lift market sentiment.
Chainlink’s recent price action has left traders anxious, as the mid-June rally has quickly fizzled out under mounting selling pressure and weak market sentiment. After a short-lived 16% surge on June 16, LINK lost its footing and slipped by 3% the following day, raising concerns about the strength of its bullish push. With key technical levels in play and Bitcoin’s instability casting a long shadow, the road ahead for Chainlink appears increasingly uncertain.
A Fragile Rally and Stubborn Resistance
The surge that briefly reignited investor interest proved to be fragile. Chainlink’s price is now testing a vital support level at $13.20. A bounce from here could temporarily ease the pressure, but technical indicators aren’t promising. The On-Balance Volume (OBV) suggests sellers dominate, while the Relative Strength Index (RSI) remains bearish. If LINK fails to hold above $13.20, the next key support lies at $12.64—below which further drops toward $12.10 or even June’s low near $10.80 are possible.
Adding to the struggle are dense supply zones. Data from IntoTheBlock shows significant sell pressure between $13.60 and $14.40. Bulls would need a strong surge in demand to break through these levels, something that hasn’t materialized amid the current market caution.
Chainlink Exchange Flows Fuel Uncertainty
Interestingly, exchange netflow data presents a mixed outlook. Over the past week, 261,000 LINK tokens—valued at $3.44 million—have flowed out of exchanges, hinting at investor accumulation. However, the 30-day data reveals around 79,000 LINK tokens moved into exchanges, suggesting continued readiness among traders to sell. This back-and-forth dynamic contributes to the ongoing volatility.
Bitcoin’s Moves Remain Key to LINK’s Fate
The broader market trend, especially Bitcoin’s behavior, will play a crucial role in Chainlink’s short-term direction. A breakout in BTC price could spark positive sentiment and lift LINK higher. On the other hand, a Bitcoin decline or prolonged stagnation could worsen the selling pressure on altcoins.
Chainlink finds itself at a critical crossroads. While a recovery from $13.20 remains a possibility, warning signs dominate the chart. Until bulls regain control and break above strong resistance zones, the caution flag stays up. For now, traders should watch the $13.20 and $12.64 levels closely and brace for potential volatility as Chainlink fights to hold its ground.
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