Chainlink (LINK) is showing signs of potential price weakness due to prevailing bearish technical signals and broader market uncertainty. Technical analysis highlights critical support at $13.20 as essential for maintaining near-term stability.
Price action indicates weak upward momentum, with significant resistance encountered between $13.60 and $13.90. Overcoming this barrier would necessitate substantial buying demand. Indicators like the Relative Strength Index (RSI) and On-Balance Volume (OBV) currently favor sellers, suggesting further declines remain possible.
Should the key $13.20 support level fail, analysts warn of potential downside targets near $12.10 or even $10.80. Traders are advised to closely monitor the $13.20 zone, noting that a sustained breakdown below $12.64 would signal heightened risk of significant losses.
Exchange flow data presents a contradictory picture. While a recent significant outflow of 261,000 LINK tokens points towards possible accumulation, a net inflow of 79,000 LINK over the past 30 days signals ongoing profit-taking pressure among investors.
Chainlink’s sentiment remains heavily tied to Bitcoin performance. Movement in the broader market leader, particularly near critical levels between $102,000 and $104,000, could exacerbate selling pressure on LINK or help stabilize its price.