• LINK rises by 2.04% in the last 24 hours, but trading volume decreases significantly, pointing to lower market activity.
• A bearish Head and Shoulders pattern suggests LINK may continue its downward trend, with support expected between $13 and $14.
• RSI at 35.32 signals oversold conditions, while MACD at -1.009 highlights the ongoing bearish trend in LINK.

Chainlink (LINK) is currently trading at $16.83, and its price has grown by 2.04% in the last 24 hours. The trading volume has gone down by 40.55% and currently stands at $807.41 million. This implies that there will be a decline in market activity, although the price has increased recently.

Source: CoinMarketCap

Over the past seven days, the LINK price has fallen by 6.2%. Despite the positive daily change, the overall performance of the coin is down. This shows the unpredictability that is still impacting Chainlink prices.

LINK Forms Bearish Head and Shoulders Pattern

Crypto analyst Alpha Crypto Signal highlighted that LINK has developed a Head and Shoulders pattern, which is a powerful bearish reversal indicator. This pattern has breached its neckline, and the strong selling volumes reinforce the breach. This implies that the downtrend may persist, as the market mood swings towards more bearish.

Source: X

As long as LINK does not exceed the neckline and regain the 9 EMA, the bearish mood will continue. The areas of the next possible downside support are in the range of $13 to $14, wherein horizontal trend lines and ascending trend lines coincide. These levels can offer certain technical support should the price approach this in the next few days.

RSI and MACD Indicate Continued Selling Pressure

The Relative Strength Index (RSI) of LINK is currently 35.32, indicating that it is approaching the oversold territory. A reading under 40 indicates bearish pressure, with little buying interest. This may indicate that the token is underpriced, but it also shows the absence of purchasing momentum. A rebound may happen when the buying interest goes up. 

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The Moving average convergence divergence (MACD) indicator records a negative value of -1.009, indicating the current bearish trend of LINK. The MACD line is below the signal line, which further depicts that selling pressure is overriding the buying momentum. This would involve a change in market mood, which is skewed towards selling.

Source: TradingView

Volume and Open Interest Fall as Funding Rate Stays Neutral

According to CoinGlass data, the trading volume has dropped by 40.74% to $1.22 billion, and open interest has fallen by 6.60% to $623.37 million. The LINK OI-Weighted Funding Rate stands at 0.0000%, which means that the market is in a neutral position.

Source: CoinGlass

Within the past 24 hours, LINK had a total of liquidations amounting to $510.97K. Long positions represented $230.86K, whereas short positions experienced liquidation of $280.12K. These liquidation data points indicate that there is still a lack of confidence in the market and that the token is exposed to further falls in the price.

Source: CoinGlass

The outlook for cryptocurrency remains uncertain while it hovers around the crucial support level of $13 to $14. The performance of the coin will rely on technical indicators and the market in general. These levels will be followed closely by traders to determine whether the altcoin will be able to turn around its downward trend or if the bearish effect will continue. The following few days will be critical regarding the course of the digital currency.

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