- Chainlink’s price recently plunged from $14.55 to $11.85, sparking investor concerns about further declines or potential recovery.
- While the $11.85 support level holds for now, a breakout above $14.50 could signal a rebound, but further downside remains possible if selling pressure continues.
The crypto market has seen its fair share of volatility, and Chainlink (LINK) is no exception. In the latest market downturn, Chainlink’s price plummeted from $14.55 to $11.85, leaving investors concerned about its next move. With the market sentiment leaning bearish, traders are wondering whether LINK can recover or if further declines are on the horizon.
24-Hour Chainlink Price Analysis
Over the past 24 hours, Chainlink has been trading within a highly volatile range. At 00:40 UTC, LINK saw an initial upward breakout from an expanding triangle pattern, followed by a brief period of consolidation within a converging triangle. The Relative Strength Index (RSI) signaled overbought conditions at 04:15 UTC, contributing to the breakout momentum.
However, by 09:15 UTC, Chainlink hit a daily high of $14.55 before a significant downturn took hold. As selling pressure increased, the price dropped to $11.85 at 00:10 UTC, with the MACD (Moving Average Convergence Divergence) confirming the downtrend through a death cross formation. This sharp decline has investors on edge as the price approaches its critical support level.
Key Support and Resistance Levels
Currently, Chainlink is trading within a defined channel pattern. The $11.85 price level stands as a crucial support zone, while the $14.50 level serves as a significant resistance barrier. The question remains: can LINK hold this support, or will it break lower?
- If the channel remains intact and Chainlink experiences a bullish breakout, the $14.50 resistance level could be retested.
- On the flip side, if the price breaks below the support level of $11.85, LINK could be on track to revisit its 52-week low of $8.
Market Sentiment and Recovery Hopes
The steep decline in Chainlink’s price has led to growing fear among investors. However, the recent bounce from the $11.85 level provides some optimism. A golden cross in the MACD suggests the possibility of a recovery or at least a temporary pullback. Much of LINK’s short-term performance will depend on the broader crypto market, especially Bitcoin’s stability and overall sentiment in the altcoin sector.
For traders and investors, risk management remains key. The unpredictable nature of the crypto market makes it essential to analyze price trends carefully and set appropriate stop-loss levels. Whether Chainlink can rebound from this downtrend remains uncertain, but for now, all eyes are on the critical support and resistance levels to determine the next move.