After spending months under sustained downside pressure, Chainlink is no longer behaving like an asset in free fall.
Instead, recent price action suggests the market has shifted into a slower, more indecisive phase, according to a new technical breakdown from MakroVision.
Key Takeaways
- LINK is no longer accelerating lower and has shifted into a slower consolidation phase.
- A support zone in the low-$12 area has so far limited further downside.
- The broader trend remains unresolved while price stays below major resistance.
Rather than continuing to push lower, LINK has begun to hover within a narrow range, a behavior analysts often associate with exhaustion on the sell side. This change in tempo marks the first notable deviation from the steep downward trend that dominated much of the past quarter.
Signs of Balance Start to Appear
MakroVision’s analysis points to a well-defined price floor that has so far absorbed selling attempts. The area just above the low-$12 region has repeatedly attracted buyers, preventing deeper losses and hinting that short-term supply may be drying up. From a technical standpoint, this behavior aligns more closely with consolidation than continuation of a bearish impulse.
Candlestick formations over recent sessions reinforce this view. Instead of large, directional moves, price candles have tightened, reflecting growing hesitation among traders rather than panic-driven exits.
Why the Recovery Case Is Still Weak
Despite the improving short-term stability, analysts warn against assuming that a broader rebound is underway. LINK continues to trade beneath key overhead zones, keeping the overall structure tilted against the bulls. Without a clear push through these barriers, upward moves are likely to remain corrective rather than trend-defining.
MakroVision highlights the region around $17 as the level that would force a meaningful reassessment of the chart. A sustained move above this threshold would signal that buyers have regained control, potentially resetting momentum in favor of a larger recovery phase.
Waiting for Confirmation
For now, Chainlink sits in what MakroVision describes as a transitional phase. The sharp decline appears to have cooled, but the market has yet to commit to a new direction. Until stronger confirmation emerges, LINK remains caught between fading bearish pressure and an unproven bullish response.
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Source: https://coindoo.com/chainlink-news-link-pauses-the-sell-off-as-market-looks-for-direction/