• Chainlink dropped over 6% as market sentiment turned risk-averse.
• LINK broke below the lower Bollinger Band; resistance sits at the 20-day SMA of $17.30.
• RSI and MACD point to continued downside with no clear reversal signs.
• Holding above $13 is key to maintaining LINK’s long-term bullish outlook.

Chainlink (LINK) is under heavy selling pressure as market sentiment turns risk-averse. With LINK falling over 6% in the last 24 hours, technical indicators point to further downside unless key levels are reclaimed.

Chainlink (LINK) has entered a decisive downtrend. The token is currently trading at $15.95, reflecting the broader crypto market’s reaction to Bitcoin’s recent retreat. This decline has reignited fears among traders, dragging many altcoins, including LINK, into negative territory.

Also Read: Chainlink Targets $20, As Open Interest Soars 13%

LINK Breakdown Below Key Bollinger Band Support

From a technical standpoint, LINK has broken below the lower Bollinger Band at $16.10, a classic signal of elevated volatility and sustained bearish pressure. The 20-day simple moving average (SMA), currently at $17.30, now acts as immediate resistance. Unless LINK can reclaim this level, any bullish momentum will likely be short-lived.

The next crucial support lies at $15.67. If this level fails to hold, a further decline toward the psychological $15.00 mark, and potentially lower, is on the table. So far, there are limited signs of a recovery unless LINK manages to push back above the mid-Bollinger Band and confirm a bullish reversal pattern.

Momentum Indicators Confirm Downward Pressure

Momentum indicators continue to reinforce this bearish outlook. The Relative Strength Index (RSI) has dropped to 24.37, which is deep into oversold territory. While such conditions can occasionally precede a relief rally, the current trend does not suggest a strong reversal is forming.

The Moving Average Convergence Divergence (MACD) further confirms this negative bias, as the MACD line sits at -0.128 while the signal line is at -0.371. The widening divergence between the two reflects increasing bearish momentum.

LINK Long-Term Bullish Structure Still Intact

Despite the near-term volatility, experienced market watcher Ali Martinez pointed that Chainlink’s long-term structure remains technically bullish, as long as the token holds above the $13 support level.

This perspective underscores that while short-term price action appears grim, macro-level support remains unbroken, offering some reassurance to long-term holders and institutional investors.

Also Read: Chainlink Dominates White House Crypto Report in Landmark Blockchain Shift