Chainlink (LINK) Momentum Fades Near Resistance With Price at Risk of Deep Retrace

Key Takeaways

• Chainlink’s price has fallen 50% year-to-date (YTD), and it’s now approaching the critical $10 level.
• Data suggests that while Chainlink has support around $10.52, resistance is stronger from $10.71 to $12.33.
• The weekly outlook is bearish, with the Supertrend suggesting further downward pressure for LINK’s price.
• Interested in buying or selling CHAINLINK LINK? Read our review of the best exchanges to buy and sell CHAINLINK LINK.

After experiencing a 50% decline on a year-to-date (YTD) basis, Chainlink’s (LINK) price is on the verge of dropping below $10. But that may not be the lowest price it might reach.

LINK, which was above $30 in December, could also drop toward the low values it hit during the 2022 bear market. This comes amid the lack of demand for cryptocurrency and major resistance ahead.

Amid low buying pressure, this analysis reveals how Chainlink’s price might fare in the coming weeks.

Chainlink Support Weak

As of this writing, Chainlink’s price is attempting to bounce back toward $12. However, on-chain data from IntoTheBlock, using the In/Out of Money Around Price (IOMAP), shows that the token might struggle.

The IOMAP uses the volume in unrealized profits or losses to spot support and resistance. Typically, the higher the volume of tokens in profits, the stronger the support.

On the other hand, when there is a high volume “out of the money,” it signifies resistance. According to the chart below, LINK’s major support lies around $10.52.

At this price, about 8,000 Chainlink addresses hold over 11 million tokens in profits. However, the combined volume of LINK in the red from $10.71 to $12.33 outweighs this support.

Due to that, Chainlink’s price might find it challenging to breach the $12 mark. Instead, the next move for the cryptocurrency could be to extend this prolonged correction.

Momentum Down

From a technical point of view, the daily chart shows that the Moving Average Convergence Divergence (MACD) has dropped to the negative region. The MACD reading indicates bearish momentum.

In addition, the Exponential Moving Averages (EMAs) tied to the MACD have formed a death cross. A death cross occurs when the longer EMA crosses above the shorter one, indicating that the price might continue to slide.

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As seen below, the 26 EMA (orange) has crossed above the 12 EMA (blue). If this trend continues, it might keep Chainlink’s price downward.

LINK Price Analysis: Correction to Intensify

The weekly chart also presents a bearish outlook, with indicators suggesting that LINK might print another red candlestick. In this timeframe, the red line of the Supertrend indicator has risen above Chainlink’s price.

This position invalidates the buy signal shown by the green line toward the end of March. Should the red line of the indicator stay above the price for a while, LINK might break below the $10 support.

If that happens, the altcoin’s value might fall to $7.37, which it last reached in October 2023. If validated, a correction to $4.72 — a level last seen during the 2022 bear market—could be next.

However, the token might invalidate this outlook if buying pressure increases.

Should that be the case, Chainlink’s price might beat the $12.33 resistance and rally toward $15.36. In a highly bullish market condition, the price might climb to $23.70.