- Chainlink (LINK) breaks bearish pattern, eyeing a 12% dip to $15 with rising selling pressure.
- RSI at 28 signals oversold conditions as LINK drops 7% in 24 hours, reaching $16.30.
- Trading volume surges 58% as LINK faces further downside, Supertrend flashes red for continued bearish momentum.
Chainlink price is experiencing significant bearish pressure after breaking down from a Head and Shoulders pattern, with a potential 12% drop toward $15. The RSI signals oversold conditions, but a bearish Supertrend suggests continued downside momentum. Trading volume has surged, highlighting increased market participation amid the decline.
Chainlink Price Faces Bearish Pressure, Eyes Key Support Levels
According to the TradingView chart, the Chainlink price has successfully broken out of the bearish Head and Shoulder pattern on the four-hour chart.
Following this breakdown, the sentiment appears to be completely shifted towards the bearish side, as no support near can hold LINK’s downside momentum.
Source: TradingView
Meanwhile, the price action and historical pattern suggest that this breakdown has opened the path for a 12% price dip until the Chainlink price reaches the $15 level in the future. Moreover, if the downside remains unchanged, it could press the asset another 13% until it reaches the next support at $13.
At press, LINK’s Relative Strength Index (RSI) stands at 28, indicating that the asset is in an overbought territory. In this case, the asset may face a short-term price rebound if buying pressure emerges and continues to decline.
Not just that, another technical indicator, Supertrend, has flipped to bearish, as it is currently flashing red and further strengthening Chainlink’s bearish outlook. This red Supertrend hints at rising selling pressure and further downside momentum in the asset.
So far, the Chainlink price has lost 7% of its value over the past 24 hours, and it stands at $16.30 level. However, traders and investors’ participation amid this sentiment has soared significantly.
Data from CoinMarketCap reveals that Chainlink’s 24-hour trading volume has jumped by 58% from the previous day.
Source: Ali_Charts/X
Given the current market sentiment and recent price dip, crypto analysts Ali Charts shared a post on X that the bullish outlook remains intact as long as the Chainlink price maintains itself above the $13 level.
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