Chainlink price continues to face pressure below significant resistance, signaling a potential shift toward a bearish phase.
The token is currently trading around $23.44, reflecting modest gains of 1.53% over the past 24 hours but remaining trapped beneath a critical bearish order block between $23.77 and $26.03. This zone has repeatedly halted upside attempts, illustrating sustained selling pressure and distribution.
Bearish Order Block Caps Price Action and Confirms Distribution Phase
Analysis from CLS Global (@CoinLiquidity) points to a clear distribution phase unfolding after the bullish structure broke on August 25, marking a transition to bearish order flow. The price has failed to reclaim levels within the bearish order block, which represents a supply zone preventing further rallies. Each retest within this resistance band intensifies selling momentum, reinforcing downward pressure.
Source: X
The chart depicts a series of lower highs and lower lows, supporting the view of weakening bullish momentum and ongoing distribution. This pattern suggests that liquidity is being absorbed ahead of a potential deeper decline. Key downside targets begin at the daily low near $20.835.
Additional price levels offering possible support lie at $19.968, $18.495, and notably $16.898. These represent imbalances and liquidity voids that could attract selling interest, potentially resulting in a total drop of approximately 30% from current levels if bearish control persists.
Intraday Movement Shows Support But Resistance Holds Firm
Despite the broader bearish outlook, intraday price action reveals that buyers have stepped in around short-term support near $22.60 after early session volatility. This defense helped the price recover into the $23.20–$23.40 range, indicating accumulation at lower levels. Mid-session strength pushed the token above $23.40, reaching the day’s peak before a minor pullback to retain higher lows.
Source: BraveNewCoin
Trading volume remains healthy at about $1.06 billion, confirming active market participation but not strong enough to drive a decisive breakout above resistance. The short-term bias leans cautiously bullish only as long as price holds above $23.00. For further upside moves, a sustained close above $23.40–$23.50 is required. Failure to maintain current levels may prompt retesting support around $22.80–$22.60, increasing downside risks.
With a market capitalization of $15.87 billion and ranking 13th among cryptocurrencies, the token maintains its position as a strong mid-cap asset, though volatility near these critical zones demands close attention.
Long-Term Structure Shows Consolidation Ahead of Crucial Breakout
Another analyst from X, Galaxy (@galaxyBTC) highlights Chainlink’s long-term price action within a symmetrical wedge pattern, tracing back to 2021. The price continues compressing between successive lower highs and higher lows, tightening toward the wedge’s apex. At current levels near $23.40, the token is approaching the wedge’s upper resistance between $30.50 and $33.00.
Source: X
This setup signals that volatility could increase soon as the asset nears a decisive breakout zone. While the market has maintained higher lows, suggesting tentative accumulation, the wedge’s resistance still caps bullish momentum. Should the token break convincingly above $30.50–$33.00, a strong rally could follow, opening the door for extended gains.
Conversely, failure to breach resistance may result in the price falling back to mid-range supports of $19.00–$20.00 or even revisiting the wedge floor near $14.30. The tightening price action means the next directional move will play a crucial role in setting Chainlink’s mid-to-long-term trajectory.