Chainlink (LINK) entered Wednesday trading under notable pressure, sliding to just above $18 following a turbulent week across digital assets. This follows a 10% drop since Monday, with LINK’s fundamentals set against a backdrop of rising volatility and a cautious retail environment.
Analysts warn that a persistent absence of bullish conviction could drive the token down a further 15%, potentially testing support at $15. The selloff, fueled by pronounced deleveraging in derivatives markets, points to a sector-wide risk-off mood. On Friday, Chainlink saw its largest ever liquidation, with $167 million cut from long positions and $16 million wiped from shorts. Although liquidations have eased, overall open interest has yet to recover—dipping from $737 million to $704 million—signaling traders remain guarded and risk appetite remains subdued.
Source: CoinGlass
In technical terms, LINK’s price remains below its critical 200-day ($19.08), 100-day ($20.59), and 50-day ($21.40) exponential moving averages, reinforcing the notion that the market bias is bearish. The daily Moving Average Convergence Divergence (MACD) indicator has maintained a sell signal since last Friday, and a downward-trending Relative Strength Index (RSI) at 38 further highlights growing seller momentum.
Bears currently control the narrative, but oversold conditions and historical support near $15 could eventually trigger opportunistic buying. For now, any sustainable rebound would first need to overcome layered resistance at $19.08, $20.59, and $21.40, before even entertaining a push above $20.
For fintech investors and market operators, the deleveraging event witnessed last week stands as a potent reminder: systemic volatility can quickly reshape digital asset risk. Whether Chainlink’s oracle protocols can attract renewed institutional adoption and capital inflow will depend on broader crypto sentiment and the capacity to weather ongoing price instability. Until then, risk management and technical signals should remain paramount in allocation strategies.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
You might be interested in
