Key Takeaways
Why is Chainlink suffering on the price charts?
The persistent selling pressure refused to ease despite onchain accumulation and TradFi partnerships, cementing seller dominance.
What is the significance of the $15.44 support?
It was a recent weekly swing level and a support, and was breached after the previous week’s trading session closed below it, at $13.4.
Chainlink [LINK] saw a 100% increase in daily trading volume at the time of writing. On Monday, the 17th of November, LINK was up 2.91% from the day’s open at $14.13.
Contextually speaking,Bitcoin [BTC] was also modestly up by 1.95%, but neither move came amidst a bullish backdrop.
In a recent report, AMBCrypto covered why the price action was bearish even though onchain metrics showed accumulation. It was revealed that Chainlink price bounces in the short term would be dominated by sellers.
The $15.45 support has been lost to the bears. This meant the weekly structure was now bearish. Additionally, a long-term trend support was also ceded. What should traders and investors expect next?
Chainlink bears firmly in control, but watch out for THIS!
Source: LINK/USDT on TradingView
The rally from $10.94 to $27.87 earlier this year provided clear Fibonacci retracement levels. Those levels aligned with weekly swing zones, including $15.44, which acted as another key support.
The previous week’s session close at $13.73 meant that LINK had fallen below two key long-term supports, namely, $15.44 and $14.56. The latter was an important Fibonacci retracement level that bulls were unable to defend.
The OBV showed that selling pressure has been steady in recent months, and a bullish comeback was nowhere in sight.
Short-term bounces still risk rejection
Source: LINK/USDT on TradingView
The daily chart outlined a firmly bearish structure. A bearish order block sat between $15 and $16.6, forming a supply zone likely to trigger selling if retested.
To the south, the next price targets were $12.7, a support level from July, and $10.94, the weekly swing low.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Credit: Source link