Chainlink (LINK)

Chainlink [LINK] Breaks Support at $24 After Bearish CHoCH – Testing $22 Zone: Key Levels to Watch

The overall cryptocurrency market is currently experiencing a decline, with several factors contributing to the downturn. Expectations surrounding the first U.S. Federal Open Market Committee (FOMC) meeting of the year, a drop in U.S. stock futures, and panic selling triggered by DeepSeek have all combined to create a bearish sentiment in the market.

Chainlink (LINK) has not been immune to these market conditions. Recently, LINK broke through its critical 4-hour timeframe support at $24, signaling a bearish change of character (CHoCH). This shift indicates a significant change in market sentiment, potentially paving the way for further downside.

Following the breakdown at $24, Chainlink tested the $22 zone, which is considered a crucial support level. Maintaining above this threshold is vital to prevent a further decline. If LINK fails to hold the $22 support, the next major level to watch is the $20 mark, which represents a key psychological support.

LINK has shown several breaks of structure (BOS) and equilibrium points, with the latest BOS leading to a decline towards the $22 support. If buying pressure doesn’t pick up soon, the altcoin could face a sharp sell-off, with the $18 level, a previous support zone, potentially in play.

LINK Chainlink
Source: TradingView

However, if bulls manage to regain control and push LINK above the $22 level, there could be an attempt to reclaim the $24 resistance level. The upcoming sessions will be crucial in determining whether LINK can stabilize or continue its bearish trend.

In addition to price action, Chainlink’s transaction metrics are showing mixed signals. While transaction counts spiked by 103% in the last 24 hours, the overall weekly count dropped by 53%. This drop suggests consolidation or waning interest, which could indicate further downward pressure on the price.

Source: IntoTheBlock

Market sentiment further complicates the outlook. Smart money sentiment remains bearish at -0.76, diverging from the moderately bullish stance of retail investors at 1.65. This discrepancy often precedes further declines, suggesting that LINK could continue facing volatility in the short term.

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.

Also Read: Chainlink (LINK) Price Holds Above $25: Analysts Forecast 500-600% Rally in 2025

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