Chainlink (LINK) has experienced a notable decline after reaching highs above $30, sparking concerns among traders about whether the downtrend will continue. With the price now hovering around $15, the key question is whether LINK will break below $10, or if a recovery is on the horizon.
Given its crucial role in the blockchain space as a decentralized oracle network, Chainlink remains a strong long-term project. However, short-term price action suggests continued volatility. This analysis will explore LINK’s key support and resistance levels, RSI trends, and the probability of a rebound or further decline.
Chainlink Price Prediction: How Bad Is LINK’s Current Downtrend?
Chainlink has been in a steady downtrend since reaching $30, forming lower highs and lower lows. After failing to hold support at $20, the price dropped below $15, signaling increased bearish momentum. The current price structure suggests that the market is struggling to find buying pressure, which could open the door for further downside.
The next critical support level sits around $12-$13, which has historically acted as a strong demand zone. If LINK fails to hold above this range, the price could break down toward $10 or even lower in an extended bearish scenario.
Will LINK Price Drop Below $10?
The possibility of LINK breaking below $10 depends on whether $12-$13 holds as support. This level has previously prevented major breakdowns, making it a key area to watch. If sellers overwhelm buyers and push LINK below $12, the next target would be $10, where further sell-offs could accelerate.
However, a break below $10 seems unlikely unless broader market conditions turn extremely bearish. If Bitcoin and the overall crypto market continue declining, then LINK could see sub-$10 prices, but for now, bulls still have a chance to defend the current levels.
Is Chainlink Showing Signs of a Reversal?
Despite its extended downtrend, LINK is showing some early signs of stabilization. The Relative Strength Index (RSI) is currently at 34, approaching the oversold zone, which suggests that selling pressure could be weakening. Typically, when RSI drops below 30, it indicates a potential reversal is near.
Additionally, the Heikin Ashi candles show that the bearish trend is starting to slow down. If LINK can print multiple consecutive green candles, it would signal that buyers are stepping in. However, a true reversal would require a break above $17-$18, which is the first major resistance level.
Chainlink Price Prediction: What Resistance Levels Must LINK Overcome for a Recovery?
For LINK to confirm a reversal, it must first reclaim $17-$18, which previously acted as a strong support zone. If buyers manage to push the price above this range, it could open the door for a rally toward $20-$22, where the next major resistance lies.
A successful breakout above $22 would indicate a larger trend reversal, potentially pushing LINK back toward $25-$28 in the mid-term. However, failing to break these resistance levels would likely result in continued sideways movement or further declines.
Final Thoughts: Should You Buy LINK Now?
Chainlink is currently at a critical price level, with $12-$13 acting as the last major support before a potential drop to $10. While the RSI suggests that a short-term bounce is possible, the broader market trend remains bearish.
For short-term traders, waiting for a break above $17-$18 would provide a safer entry point. Meanwhile, long-term investors might consider accumulating in the $12-$15 range, as these levels historically offer strong buying opportunities.
For now, LINK’s next move will depend on whether bulls can defend support or if further breakdowns occur.