LINK Token Struggles to Settle Gains Around the $12 Mark Amidst Selloff

The Chainlink (LINK) token price is trading with bearish bias and fell to the downward trajectory support zone around $12-13

Chainlink (LINK) token price encountered a V bottom reversal from the $20 mark and encountered selling pressure on the 4hr chart, slipping below the key moving averages.

Recently, LINK token price took a U-turn from its demand zone at $12 and lifted the gains toward the $20 mark, which is a primary resistance level. Amidst the bullish momentum, buyers failed to stretch the pullback and felt there. Afterward, sellers entered the battle and pushed the token which spoiled the gains.

Although the Chainlink token has a strong support zone and a base around the $11 mark, which is a strong challenge for the sellers. Until LINK token stays above it, buyers will remain in the game.

At press time, LINK token is trading at $13.61 with an intraday drop of 5.32%, reflecting neutrality on the chart. It has a monthly return ratio of -16.30% and 144.20% yearly, reflecting short term weakness.

The pair of LINK/BTC is at 0.000212 BTC, and the market cap is $7.99 Billion. Analysts are neutral and suggest that LINK may retain strength and will pull back.

The Chainlink (LINK) token price is trading with bearish bias and fell to the downward trajectory support zone around $12-13, reflecting selling pressure in the last few trading sessions.

Following market indecisiveness, LINK token lost the initial gains and retested the base at the $12 mark. Until LINK token does not retain the $15 mark, the trend will remain negative and sellers are likely to dominate.

The Momentum Indicator (RSI) curve slipped to the oversold region and glimpsed a bearish divergence. Similarly, the MACD indicator displayed the red bars on the histogram and plotted a bearish crossover on the charts.

Its trading volume remained flat, while the market cap fell over 2%. Notably, LINK token has a total supply value of 1 billion and has a fully diluted market cap of $13.60 Billion.

Price Volatility and Weighted Sentiment Data Highlights Negative Outlook

Amidst the follow on decline, the price volatility remained average and displayed lower swings, justified the drop over 12% in the last 24 hours.

The weighthed sentiment data remained below the midline region and reflected declining investor. A tweet by @SpotOnChain highlighted that over 107.7 Million worth of LINK was transferred to Binance since Aug 2022.

21M $LINK ($295M) was unlocked from @chainlink Noncirculating supply contracts ~3hrs ago, including:

• 18.25M $LINK ($264M) to #Binance

• 2.25M $LINK ($31.3M) to Multisig 0xD50f

Notably:

– Chainlink has unlocked 127M $LINK and sent 107.7M $LINK to Binance at ~$9.89 since Aug… https://t.co/bVUDTMDFgZ pic.twitter.com/jxaO5Glxjb

Source: X

@CryptoTony in his post on X, revealed that above the $14.70 mark, the LINK token looks good to go for long ahead.

$LINK / $USD – Update

Reclaim $14.70 and we have a good entry, othewise hold off for the time being pic.twitter.com/5HaC9t90gR

Source: X

The immediate support levels for the LINK token are $13 and $2.30, whereas the key upside hurdle is around $15 followed by $15.80

Futures OI Data Overview

Following the price decline, the buyers unwinded their long positions this week.

The open interest dropped over 3.25% to $178.61 Million in the last 24 hours, conveying the long unwinding activity.

Conclusion

The Chainlink token price dragged below the significant moving averages and is heading toward its prompt support zone of $11. Throughout the downturn, the token is still looking good to go ahead.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.