Chainlink (LINK) continues to face significant challenges, with bearish pressure dominating the altcoin market. The recent decline in the broader crypto market, partially triggered by a $1.5 billion theft at Bybit, has further compounded LINK’s struggles. Despite some attempts by buyers to reverse the trend, sellers remain in control, pushing Chainlink’s price towards lower Fibonacci levels. On-chain metrics show a bearish outlook, raising concerns about the likelihood of LINK retesting critical support levels.

LINK’s Struggles Amid Rising Selling Pressure

Over the past 24 hours, Chainlink has experienced notable long position liquidations, contributing to the overall bearish sentiment. According to data from Coinglass, out of $2.76 million in LINK transactions, $2.72 million were long liquidations. In contrast, only $42.7K worth of positions were liquidated on the sell-side. This imbalance indicates that sellers are firmly in control, driving the price downward.

Chainlink’s Netflow data from IntoTheBlock highlights the potential for further bearish pressure, with inflows exceeding outflows. Currently sitting at $2 million, Netflow is a key indicator of potential sell-offs, as more LINK tokens are being moved onto exchanges, increasing the available supply for sale. This rising volume of available LINK could exacerbate selling pressure if it continues to grow.

In addition to these metrics, whale activity in LINK has decreased significantly. Large transaction volumes have fallen from a high of $139.52 million to just $25.81 million in recent days. This drop suggests that major investors are less interested in buying or holding LINK at current levels, which could keep downward pressure on the price.

Declining Interest and Volatility

Interest in Chainlink trading has also declined, with open interest—a measure of outstanding trading contracts—falling by 1.7% in just 24 hours. Currently, open interest stands at $517 million, signaling a decrease in market participation. The long/short ratio, which measures trader sentiment, is currently at 0.7969, indicating that 56% of traders expect LINK to decline further. This shift in sentiment adds to the bearish outlook for LINK, suggesting that sellers will continue to dominate in the short term.

Where Does LINK Go From Here?

As of now, Chainlink is trading at $16.24, having fallen by 7.31% over the past 24 hours. The price has struggled to break through immediate resistance levels, with sellers firmly blocking any upward movement. The Relative Strength Index (RSI), currently sitting at 27, is approaching oversold territory. This suggests that LINK’s price may experience further downside, with the next critical support level being $15.5.

If Chainlink manages to hold above the $15.5 level, there is a chance it could form a base for a potential recovery, pushing the price back toward $20. However, if the price breaks below $15.5, bearish pressure will intensify, triggering stop-loss orders and fueling a wave of long liquidations. This could send LINK down to its next support at $12.4.

The Road Ahead for Chainlink

Chainlink’s near-term price trajectory is uncertain, as the altcoin market remains under pressure and selling activity continues to dominate. A retest of the $15.5 support seems likely unless buyers can push back against the current bearish momentum. Traders should closely monitor the $15.5 level for any signs of a potential reversal. However, if the downward trend persists, further consolidation around the $12.4 level could be in store.

For now, the market remains in a precarious state, and LINK traders should be cautious of further volatility. Whether Chainlink can recover will depend largely on broader market conditions and whether buyers can regain control at key support levels.