Chainlink Price Plunge 13% in a Week: Will the Bearish Trend Continue?

Chainlink (LINK) has recently seen a sharp price drop, reflecting the overall crypto market downturn. Currently, LINK is trading below important support levels, showing a strong bearish trend. Technical analysis further confirms this situation, with prices facing pressure at key resistance levels.

Reasons for Chainlink Price Drop

As major cryptocurrencies such as Bitcoin and Ethereum have fallen, LINK has also been affected. LINK has fallen 5% in the past 24 hours and is currently priced at $10.59, down 13% in a week. This decline reflects weakening market sentiment, and investors are waiting for the market to stabilize.

Future Support Levels for LINK

If the downward trend continues, the LINK price may first stabilize at around $10. However, if the market continues to deteriorate, it has the potential to fall to $8, or even touch the $7 support level in extreme cases.

Technical Analysis Signals

Technical indicators on the 4-hour chart show that LINK is currently in a bearish state. The Moving Average Convergence Divergence (MACD) has been in negative territory, reinforcing bearish expectations. The Relative Strength Index (RSI) is 30, indicating that LINK has entered the oversold zone, which usually implies that the price may rebound or slow down.

Whale transactions have also decreased significantly, and the frequency of large transactions above $100,000 has dropped significantly. This is consistent with the continued decline in LINK prices, indicating that market sentiment is weak and selling pressure has weakened.

Future Trends and Market Sentiment

If bulls can regain dominance, LINK has the potential to rebound from the current oversold state and challenge the resistance level around $11. However, future price movements will still depend on the overall market sentiment and the re-entry of large investors such as whales.