Chainlink, one of the leading players in the decentralized finance (DeFi) space, is currently under intense bearish pressure, with key technical indicators signaling a potential decline towards the critical support level of $12. As of the time of writing, LINK’s market capitalization stood at over $7.7 billion, with a trading volume of over $243 million. The asset has been declining, with a 3.75% drop in the last 24 hours, trading at around $12.82.

Assessing Current Market Sentiment
The current market sentiment around Chainlink is still negative, with the price trading below the 100-day Simple Moving Average (SMA) on the 4-hour chart. This suggests that the bearish trend may continue, with further selling pressure likely to drive the price down. The 4-hour Relative Strength Index (RSI) has also dropped below 50%, indicating oversold conditions and growing selling pressure.

Identifying Critical Support and Resistance Levels
If Chainlink’s price breaks and closes below the $12.44 support level, it may continue its bearish movement towards the next support range at $11.10 and potentially even lower levels. However, if the digital asset encounters resistance at $12.44 and fails to break below, it could lead to a potential upward move, reaching the $15.25 resistance mark. Further gains could occur, targeting the $17.96 resistance point and beyond.

Conclusion
Chainlink is currently facing increased bearish pressure, with key technical indicators signaling a potential decline towards the critical support level of $12. Unless there is a significant reversal in market sentiment, the asset may continue to decline, testing lower support levels in the near future. Investors and traders should closely monitor the asset’s price movement and technical indicators to make informed decisions about their positions.

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Source: NEWSBTC