Chainlink (LINK) Weakens: Is a Breakdown Below $6 Imminent?

• Chainlink has lost 7%, with its price trading at $9
• LINK’s technical charts signal growing bearish momentum.

Whales have accumulated around 3.12 million LINK tokens over the past week, signalling growing confidence. When large holders start adding to their positions, it usually signals confidence in the asset’s potential to move higher. At the same time, this kind of accumulation tightens the available supply in the market, which can naturally push prices up if demand stays consistent.

In the near term, this can help keep the momentum on the upside. That said, the overall direction still depends on broader market sentiment. If buying interest continues and retail traders step in, Chainlink could be setting up for a breakout or a steady upward trend. 

(Source: CMC)

The asset opened the day trading at a high of $9.86, and with the bearish turn, the LINK price has slipped to $9.10. At press time, it trades at $9.15, with the trading volume soaring by 20.16% to $758.35 million. Meanwhile, the market observed a liquidation of $1.15 million worth of Chainlink. 

Chainlink’s active downside trading pattern has the potential to push the price toward the support at $9.09. If the bearish correction strengthens, the death cross might emerge, and the price would head to $9.03 or even lower. On the upside, upon the reversal of LINK’s ongoing momentum, the price could climb to the resistance at the $9.21 range. Assuming the bullish pressure escalates, the golden cross might form and send the price above $9.27. 

Chainlink’s Technical Setup Turns Negative: Will the Slide Continue?

The Moving Average Convergence Divergence (MACD) line of Chainlink is below the zero line, and the signal line is positioned above it. Thus, the broader trend is weak, but the recent price action is trying to stabilise or turn upward. Notably, the market is in a transition phase. 

(Source: TradingView)

LINK’s Chaikin Money Flow (CMF) indicator value of -0.21 exhibits clear selling pressure. The money is flowing out of the asset, and there is no strong buying to hold the price up. The market is heavy and struggling to move higher unless fresh buying steps in.

Moreover, the daily Relative Strength Index (RSI) at 35.37 displays that the momentum is tilting bearish, with the sellers having the upper hand. The price has been drifting lower, not in an extremely oversold condition, and the market still has room to the downside if the pressure continues. 

Chainlink’s Bull Bear Power (BBP) reading found at -0.57 shows significant bearish dominance. It likely pushes the price below its average level, and the downside move has enough strength. The market is heading lower, and unless the buyers step in, the weakness could continue.

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