LINK Sees Potential Trend Shift Despite Imminent Dips

Chainlink (LINK/USD) has been trading within a defined range since April, fluctuating between $12.73 and $18.68. Early July saw a bearish sentiment, pushing the price down to $11.07, before stabilizing around $12.33. As Chainlink stands around $12.483 at press time, a potential support zone at $12.3 could trigger a reversal in the coming days.

Chainlink’s price action has consistently followed a downtrend, characterized by lower highs and lower lows. This trend indicates a bearish market sentiment. The current price, which is down by 3.03%, reflects this ongoing decline. Notably, the trading volume stands at 315.217K, with an increase in selling volume as the price drops. 

Indicators like the Relative Strength Index (RSI) and the Money Flow Index (MFI) further confirm the bearish momentum. The daily RSI is at 40.26, below the neutral level of 50, and approaching the oversold territory at 30. This position indicates strong bearish momentum. Similarly, the MFI at 37.83 suggests moderate selling pressure, although it has not yet reached the oversold region.

Chainlink’s immediate support is around the $12 level, a point that has been tested multiple times in recent months. Resistance is identified at $14, a level where the price has struggled to break above in the short term. The overall trend analysis indicates a bearish sentiment, with consistent lower highs and lower lows.

On the weekly chart, Chainlink’s price action shows a bearish trend with the price at $12.464, down by 6.32%. The weekly chart reveals a bearish candlestick, indicating a significant drop. Although the volume isn’t explicitly shown, it is crucial for confirming trends. Low volume on a drop might indicate potential seller exhaustion.

Indicators like the MFI and RSI on the weekly chart also reflect a slight bearish momentum. The MFI at 59.37 suggests no extreme buying or selling pressure. Meanwhile, the RSI at 43.63 indicates a slight bearish momentum but not in oversold territory. The price’s failure to sustain above the $13 level, now acting as resistance, and the $12 level acting as immediate support, highlight the critical levels to watch.