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- LINK lost $15.45 and $14.56 supports, confirming a bearish weekly structure.
- Short-term rallies may face rejection near $15–$16.6 supply zone.
- Downside targets: $12.7 and $10.94, highlighting potential risk for traders.
Chainlink [LINK] saw a sudden spike in trading volume, jumping 100% on November 17, yet the price action tells a different story. LINK rose modestly by 2.91% to $14.13, while Bitcoin [BTC] also inched higher by 1.95%. Despite these gains, the market remains under bearish pressure, leaving investors cautious.
Key Supports Broken, Bears in Control
Recent analysis shows that Chainlink has lost crucial support at $15.45, marking a shift in weekly structure toward the downside. Long-term trend support near $14.56 also failed to hold. The loss of these levels signals that sellers currently dominate, making short-term rallies vulnerable to rejection.
Fibonacci retracement levels from the rally between $10.94 and $27.87 highlight critical zones, with $14.56 and $15.44 previously acting as strong support. Their breakdown indicates that bullish strength is weak, and the market may continue lower in the absence of fresh buying momentum.
Short-Term Bounces Face Heavy Resistance
The daily chart reveals a bearish order block between $15 and $16.6, forming a supply zone likely to trigger selling if LINK attempts a rebound. Traders watching for recovery should note that even temporary bounces may be short-lived, with selling pressure persistent as reflected in the OBV (On-Balance Volume) indicator.
Immediate downside targets include $12.7, a support from July, and $10.94, the weekly swing low. These levels could act as critical testing points for both traders and investors seeking entry or exit opportunities.
Also Read: Bitwise Spot Chainlink ETF Nears Launch After DTCC Listing — What Investors Must Know
What This Means for Traders
Chainlink’s short-term outlook remains bearish despite rising volume. While accumulation on-chain hints at potential buying interest, sellers remain firmly in control. Investors should approach rallies cautiously, watch for supply zones near $15–$16.6, and consider downside targets when planning trades.
In summary, LINK may see temporary bounces, but the broader trend favors the bears. Market participants should monitor support and resistance closely to navigate the current volatility effectively.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
