- Chainlink (LINK) has been reflecting bearish tendencies in the recent market movements.
- There has been notable buying pressure despite a lack of strong spot demand in the immediate term.
- On July 21st, Chainlink breached a key market structure at $14.75, signifying potential shifts in its momentum.
Discover the latest developments in Chainlink’s market behavior and what it means for current and future investors.
Chainlink’s Bearish Trajectory: An Examination
Chainlink has predominantly exhibited a bearish trend from May to July. During this period, a significant shift was observed on July 21st when LINK’s price exceeded $14.75 on the daily chart. However, the upward momentum seen in mid-July was erased in subsequent trading sessions. Despite divergent signals from momentum and volume indicators, a potential price rebound was anticipated among market watchers.
Potential Support at Range Lows
Since April, LINK has been oscillating within a range of $12.73 to $18.68. The bearish sentiment that dominated early July pushed LINK’s price down to $11.07, hovering around $12.33 for a few days. This establishes the $12.30 mark as a possible support level that could ignite a bullish reversal.
Mixed Signals from Indicators
The Chaikin Money Flow (CMF) maintained above +0.05, indicating overall buying pressure despite recent price declines. In contrast, the Relative Strength Index (RSI) dipped below the neutral 50, suggesting a bearish shift in momentum. These mixed signals imply that while the range lows could trigger a rebound, caution is advisable.
Short-Term Outlook for Chainlink
Over the past 72 hours, LINK’s price has been on a gradual decline. This downward price movement was mirrored by a decrease in Open Interest (OI) from $152 million to $143.7 million, signaling bearish market sentiment among futures traders. The downward trajectory of the spot Cumulative Volume Delta (CVD) further highlights weak demand, reinforcing the bearish outlook for Chainlink.
Conclusion
In summary, Chainlink’s recent market behavior indicates a bearish short-term outlook, driven by weak demand and declining investor confidence. The price may find support at the $12.30 level, potentially leading to a reversal. However, the mixed signals from different indicators necessitate a cautious approach for traders and investors alike.
