Can Chainlink Bulls Defend Key Support?

• Chainlink slipped over 9%, trading at $23.
• The LINK market recorded $12.24 million in liquidations.

With the bearish command, the global crypto market cap lost over 2.99%, and it has been settled at $3.8 trillion. As the red candlesticks are lit up, the assets display downside price movements, including the largest assets, like Bitcoin (BTC) and Ethereum (ETH), losing momentum, traded at $110.2K and $4.4K range. 

Notably, among the pack of altcoins, Chainlink (LINK) has posted a 9.27% slip in the last 24 hours. In the early hours, the asset traded at a high of $26.21. Later, the bears stepped in and took charge of LINK, marking its daily low of $23.14, choosing to trade on the downside. 

According to the CMC data, at the time of writing, Chainlink traded within the $23.33 mark. Meanwhile, the market cap has reached $15.85 billion, and the asset’s daily trading volume has spiked by over 7.98%, touching $1.92 billion. In addition, the market has seen a 24-hour liquidation of $12.24 million worth of LINK. 

Is a Price Reversal for Chainlink in Sight?

The four-hour technical indicator analysis of Chainlink reports a negative market outlook. The Moving Average Convergence Divergence (MACD) line and the signal line have settled below the zero line. It indicates bearish momentum, and the price is moving downward, as a confirmation of weakness.

Chainlink’s Chaikin Money Flow (CMF) indicator is located at -0.28, which is negative. It suggests that the selling pressure dominates the market. With this moderately bearish value, the money outflow from the asset is stronger. The price closes are happening often near the low of the trading range. 

The recent price graph of Chainlink exhibits a downside trading pattern, and the price could instantly slide and retest the $23.27 support. If the asset’s bearish pressure intensifies, it triggers the death cross to take place, and the price might move down below the $23.21 range or even lower.

On the upside, assuming the asset’s ongoing price action takes a bullish turn, Chainlink could push its price higher to the nearby resistance at around $23.39. Once the asset holds the price stable, it might climb toward the recent high above the $23.45 range, with the emergence of the golden cross. 

Furthermore, the asset’s daily Relative Strength Index (RSI) found at 35.07 signals that it may approach the oversold territory. The current bearishness is not extreme, and if it starts climbing back up, a potential reversal may occur. Chainlink’s Bull Bear Power (BBP) reading of -2.35 implies the bears are currently dominant, with the price may be moving below.

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