Chainlink has remained under pressure to sell since the beginning of the year, pushing the brand back to a critical point. LINK value it is trading near $8.45 after losing 1% in the last 24 hours, while the volume of trading has increased by 27%, which means that the market is rising as the price is getting closer.
The recent decline has also pushed LINK below its short-term moving average, with the 7- and 30-day SMAs near $8.50 now serving as resistance levels. Failure to attempt a recovery indicates a weakening of bullish sentiment and increases the possibility of a deeper correction if sellers continue to correct.
Although the short-term growth rate is still low, the past shows that Chainlink may be approaching the important point that previously indicated that it is a big market. This raises a very important question: Is LINK preparing for another leg down to $6, or will this weakness lead to a long-term recovery?
Is the LINK Price Approaching the Greatest Option?
The weekly chart shows Chainlink trading directly above the long-term support area around $7.5-$8.0. The region has repeatedly acted as a battleground between bulls and bears since 2022, which makes this test one of the most important technologies for LINK in recent years. A break below these levels would weaken the long-term plan and indicate the next major support area between $5 and $6.
The weekly RSI continues to approach the oversold area, forming a lower and lower ladder below the descending line. Currently, the MACD remains in bearish territory but is showing early signs of stabilization. The histogram has begun to break down, indicating that the downward trend is no longer expanding at the same speed seen in the initial stages of the decline.
Required Regulatory Standards
- Recent Support: $7.50 – $8.00
- Big Help: $5.00 – $6.00
- Immediate Resistance: $8.50 – $8.60
- Short Term Rate: $10.00
- Big Rejection: $12.50 – $13.00
Down Under
The price of Chainlink has entered one of the most valuable areas in years, and the area of $7.5-$8 is now acting as the last line of defense for the bulls. Although the spread is still limited, a breakdown could show LINK to the $5-$6 support group. The low closing of the week will show whether LINK will face another problem or will start to build a base for recovery.
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