Altcoins News
By Maheen Hernandez
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Chainlink (LINK) is encountering a tough battle after a recent rally, with traders watching closely as the cryptocurrency approaches critical support and resistance levels.
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Recent Price Action Shows Signs of Weakness
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In the past 24 hours, Chainlink’s price slipped approximately 5.25%, settling near $14.40 at the time of writing.
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Additionally, on-chain data shows a decline in user engagement. The number of daily active addresses interacting with the Chainlink network fell by 13%, reflecting waning…
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Market sentiment is showing signs that bearish traders are positioning for a price correction.
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According to data from CoinGlass, two key price levels are under scrutiny. The $14.25 level is identified as a critical support, while $15.77 acts as strong resistance.
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On the other hand, if the price can overcome resistance and move above $15.77, traders holding short positions could face liquidations totaling over $15 million.
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Technical Indicators Point to Possible Downtrend
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Chainlink’s technical charts reveal repeated failures to breach two significant barriers: the descending trendline and the 200-day Exponential Moving Average (EMA).
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The repeated rejection near the 200-day EMA—a widely followed moving average in trading—adds weight to the idea that LINK might be preparing for a deeper correction. If the $15.
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Some analysts suggest the next key downside target could be around $12.70, representing an additional 10% drop from current levels.
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Investors and traders should closely monitor LINK’s price movements around these crucial levels. A successful break above $15.
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Conversely, if the price fails to hold $14.25, it might indicate the start of a more significant pullback.
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Beyond price, keeping an eye on on-chain activity like daily active addresses will provide insights into the health of the network’s user base.
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Chainlink is at a critical crossroads after a strong rally, facing stiff resistance near $15.77 and testing important support at $14.25.
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