Chainlink (LINK) is currently navigating a challenging period, with its price action firmly entrenched in bearish territory despite underlying on-chain accumulation and strategic TradFi partnerships. The persistent selling pressure has proven formidable, dominating market sentiment and leading to a significant breakdown of key support levels.
Market Breakdown: Critical Supports Breached
Recent trading sessions have solidified seller dominance, pushing Chainlink below crucial long-term support levels. The breach of the $15.44 mark, a significant weekly swing level, followed by the loss of the $14.56 Fibonacci retracement level, signals a definitive shift to a bearish weekly structure. The prior week's close at $13.73 underscores the severity of this breakdown, indicating that bulls have failed to defend vital price floors amidst a backdrop of steady selling pressure, as reflected by the On-Balance Volume (OBV).
Bearish Outlook and Downside Targets
The immediate future for Chainlink appears challenging, with the daily chart exhibiting a clear bearish structure. Short-term price bounces are likely to face significant rejection, particularly within the established bearish order block and supply zone between $15 and $16.6. This area is poised to trigger further selling pressure if retested. For traders and investors, attention now shifts to the downside, with the next potential price targets identified at $12.7, a support level from July, and the overarching weekly swing low of $10.94.
