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- Chainlink (LINK) is facing downward pressure as sellers outpace buyers, making it challenging for the token to break above resistance at $12.
- With continued selling dominance, LINK’s price could dip below $10 unless a strong push from buyers reverses the trend.
Chainlink (LINK) has been facing a challenging phase as sellers (bears) dominate the market, creating substantial resistance that blocks the token’s ability to rally past crucial price points. With LINK’s price hovering between $10 and $11, questions are arising about whether the token will rebound or if a further decline is imminent. Here’s a closer look at what’s causing the pressure and what could unfold next.
Bearish Control Dampens LINK’s Potential
The balance between Chainlink bulls and bears has tilted in favor of the latter, according to data from IntoTheBlock. Here, “bears” represent the addresses selling a significant portion of the token volume, while “bulls” refer to those actively buying it. Recently, bears have sold over 500,000 more LINK tokens than bulls have purchased. This selling dominance has suppressed any potential price surge for the token, even though analysts suggest it might ideally trade closer to $15.
Resistance at $12 Poses a Major Barrier
Resistance around $12 has become a critical challenge for LINK. The In/Out of Money Around Price (IOMAP) metric shows a high concentration of sellers who bought in at prices above the current value. When LINK’s price approaches the $12 range, many holders look to sell at break-even, which intensifies the selling pressure. Around 18,000 addresses holding more than 100 million LINK tokens could trigger even more resistance if the price heads toward $12.47 to $12.82.
This significant cluster of sellers forms a barrier that could make it hard for the price to move upward. Without stronger buyer support, LINK’s climb to higher price points appears constrained.
LINK’s Price Prediction: Lower Lows on the Horizon?
On the technical front, the Exponential Moving Averages (EMA) indicate a downward trend, as the 20 EMA and 50 EMA are converging, signaling market indecision. With bears in control, the downward pressure suggests that the altcoin may soon test lower support levels below $10. However, a potential rebound could still happen if bulls step in to absorb the selling pressure.
Can Bulls Save LINK from Further Decline?
While the current indicators lean toward a potential dip, bullish intervention could alter this outlook. For LINK to recover, bulls need to outpace bears, reclaiming enough market share to stabilize the price around $12. If this reversal happens, analysts believe LINK could still reach $15.25, though only if selling pressures ease and market demand returns.
Conclusion
The near-term outlook for Chainlink remains uncertain, with bears currently holding an advantage. Resistance at $12, along with the selling momentum, could lead to a retest of $10. However, a strong push from buyers might provide the support LINK needs to stabilize and potentially make another attempt at $15. For now, caution seems warranted, as LINK’s journey ahead looks to be anything but smooth.
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