LINK Momentum Weakens, Could Chainlink Break $20 Support?

• Chainlink has slipped toward the $23 mark.
• LINK’s trading volume has surged by over 94%.

Today, the crypto market opened on a bearish tone, shedding over 3.22% in market cap, reaching $3.8 trillion. The broader sentiment is neutral, with the Fear and Greed Index value settled at 47. Meanwhile, all major digital assets have lost their recent gains, and fallen to the former support, including the largest assets like Bitcoin and Ethereum. 

Among the altcoin pack, Chainlink (LINK) has dropped by over 2.22% in the last 24 hours. In the early hours, the asset traded at around a low of $23.60, and it climbed toward a high range of $25.90, with the sudden bullish shift. Gradually, after multiple ups and downs, LINK hints at a downtrend.

At the time of writing, Chainlink traded at around the $23.56 level. The market cap has reached $15.89 billion, with the asset’s daily trading volume has surged by over 94.13% to $2.9 billion. The Coinglass data has revealed that the market has seen a $7.06 million worth of LINK liquidated during this interval. 

Can Chainlink Reverse Its Current Momentum?

Assuming Chainlink’s price fell steeply toward the nearby $23.50 support, the active bears might gain strength. Within the highly bearish scenario, the asset could push the price down to its recent low at around $23.44 or even lower. If a reversal in momentum kicks in, it could trigger the price move up to the resistance at $23.62. Further bullish correction might bring in a retest of the Chainlink price above the $23.68 level.

The Moving Average Convergence Divergence (MACD) line of Chainlink is found above the signal line, showing a short-term bullish momentum. But both lines are below the zero line, indicating an overall bearish trend, a weak recovery within a broader downtrend. Besides, the Chaikin Money Flow (CMF) indicator is settled at -0.13, suggesting a selling pressure in the market. Notably, the money is likely flowing out of the asset. 

Chainlink’s current market sentiment is slightly bearish to neutral as the daily Relative Strength Index (RSI) at 42.05 signals a slight selling pressure, but might hit the oversold zone if the value slips below 30. Furthermore, the Bull Bear Power (BBP) reading of -1.21 implies a clear bearish dominance, with price staying below. The negative value confirms stronger selling.

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