Chainlink (LINK) is still experiencing technical depression, with the price behavior still declining in a larger counter-measuring framework.
Although the volatility has somewhat calmed down in relation to previous sell-offs, analysts have observed that the coin is yet to regain key resistance levels to influence the momentum.
The market has stabilized with a price around an active demand zone in history, and this has now reached a critical juncture that may see the consolidation or the path of further downward movement.
Higher Timeframes Flags Repeating Descending Structure.
A multi-timeframe view of Chainlink was posted by analyst Don, and he has noted a repeating descending pattern of the channel that has been repeated since early 2024.
The chart indicates that the asset has been developing successive lower highs on every corrective bounce, and the price is rolling over again and again due to the resistance of the trendline of decline.
Source: X
The analysis by Don describes three of the major distribution-to-decline cycles, each of which has a sudden retracement into an extensive green demand zone. During the latest leg, the memecoin denied the $1820 area and returned to the $1213 support area, which in the past has served as a reaction zone when the token was pulling back.
The chart projection indicates that the token stays below the declining resistance, the upside effort could keep failing to achieve a result, and keep the price range-bound or biased to the downward fringe of the demand.
Any structural change would demand a vicious upside break beyond the downward trendline and a recapture of previous breakdowns, which have steadily placed a lid on rallies since the beginning of the last year.
Data shows volume with a short-term weakness.
On the other hand, Chainlink is currently trading between 12.82 and 13.86 within a 24-hour range, which is more volatile intraday when compared to the larger volatility found in BTC, the leading cryptocurrency in the market, BraveNewCoin.
The asset has registered a -0.10% percent fall in the last 24 hours, with the daily trading volume standing at $636.24 million, indicating high participation in the downward swing.
Source: BraveNewCoin
Market capitalization of the token is 9.08 billion, which is ranked 21st in the list of cryptocurrencies, and it is backed by the circulation of 708.10 million tokens.
The current weakness is recent, and the liquidity is robust, implying it is distributed, as opposed to being in a selling position due to illiquidity. In the longer-term view, the asset is still trading nearly three-quarters of its all-time high of $52.70, highlighting the extent of the larger corrective timeframe since the 2021 peak.
Indicators Shows Compression of Support with weak momentum.
As of writing, the daily chart provided by TradingView indicates that the crypto is consolidating slightly above the level of the previously mentioned 12.70 support, but the currency has fallen steadily in the past since the 26 to 28 band that followed immediately after the year ended.
The latest daily candle represents further pressure on the downside, as on the one hand, the prices are not able to recover above the resistance zone of 14-15, which has been a rejection of upside efforts since November.
Source: TradingView
Volume is lower compared to the sell-off in October, which means that there is less aggressive selling, but there are no high levels of buyer conviction as well. The momentum measures are held low, and the price movement is concentrated on the downside of the recent price range.
That squeeze is indicative of a possible decision area, and any failure below the support might permit the way down to greater historical demand, and any stabilization would not result in instant reversal, but instead range trading.
Structurally, Chainlink has been weak since it is still trading below the receding resistance and not managed to regain previous support points. The price moves around the existing demand are increasingly being monitored by market players as this price range will probably define whether LINK will proceed with the corrective trend or enter a larger consolidation period.