TLDR
- Chainlink dropped 3% in the past 24 hours after a brief 2% rally on June 16th
- Key resistance at $16 level continues to reject price advances, marking the third failed attempt
- Exchange data shows mixed signals with recent accumulation but overall monthly inflows to exchanges
- Technical indicators including RSI and OBV show bearish momentum building
- Support at $13.2 is being tested with potential for further decline to $12.64 or lower
Chainlink has faced renewed selling pressure after a brief rally attempt was rejected at key technical levels. The token dropped 3% in the past 24 hours following a 2% gain on June 16th that initially sparked hopes of a larger recovery.
The recent price action reflects broader market uncertainty, with Bitcoin’s fluctuations influencing altcoin movements. Bitcoin is expected to see bullish reactions in the $102,000-$104,000 range and bearish reactions near $108,000-$110,000 over the coming week.
Chainlink currently trades near the crucial $13.2 mid-range support level. This level has historically provided buying opportunities for traders looking to enter positions with clearly defined risk management strategies.
The token’s recent rally attempt was cut short after approaching the $16 resistance zone. This level coincides with a long-standing descending trendline and the 200-day Exponential Moving Average, creating a strong confluence of resistance.
Technical Indicators Signal Caution
Multiple technical indicators are flashing warning signs for Chainlink’s near-term outlook. The On-Balance Volume (OBV) shows seller dominance, while the Relative Strength Index (RSI) displays bearish momentum.
Trading volume declined during the recent rejection, indicating reduced interest among market participants. Daily Active Addresses dropped by 13%, showing fewer users are interacting with the Chainlink network.
The In/Out of the Money data reveals supply zones at $13.6-$13.9 and $14-$14.4. Any rally from current support levels would need to overcome these areas of concentrated selling interest.
Short positions have grown steadily according to on-chain analytics. Current liquidation levels show $14.25 as support and $15.77 as resistance, with more capital positioned against LINK than in its favor.
Exchange Data Shows Mixed Signals
Exchange netflow data presents a complex picture for Chainlink’s direction. Recent data shows outflows of 261,000 LINK tokens worth $3.44 million, indicating accumulation behavior.
However, the 30-day change reveals nearly 79,000 LINK tokens worth $1.04 million moved into exchanges. This suggests selling pressure may be building despite recent short-term accumulation.
The netflows in June have been mostly positive, with some accumulation occurring over the past five days. This creates conflicting signals about investor intentions.
Exchange inflows typically indicate preparation for selling, while outflows suggest long-term holding. The mixed data reflects uncertainty among LINK holders about the token’s direction.
A failure to hold the $13.2 support could lead to a slide toward the range low at $10.8. Traders are watching for a drop below $12.64 and subsequent retest of $13 as resistance for potential short positions.
The pattern of rejection at the $16 level has repeated multiple times since the beginning of the year. Each attempt to break this confluence of resistance has met strong selling pressure.
If the current support fails to hold, the next target could be around $12.70, representing an additional 10% loss from current levels. This would mark a deeper correction from recent highs.
The descending trendline continues to act as a ceiling for price rallies, with the latest rejection marking the third failed attempt to break above this technical barrier.
The post Chainlink (LINK) Price: Token Drops 3% After Failed Rally Attempt Meets Resistance appeared first on CoinCentral.
