Key Takeaways
- LINK faces resistance with nearly 95 million tokens waiting to break even.
- User engagement with the altcoin has dropped, indicating a bearish outlook.
- Chainlink’s price is likely to slide below $11 amid fading buying pressure.
Chainlink’s (LINK) price has decreased nearly 5% in the last 24 hours, failing to break above key resistance levels.
At press time, LINK hovered around $13.30, far below analysts’ predictions for this cycle.
For some, the recent decline presents an opportunity to accumulate LINK at cheaper prices. Others, however, believe that the pullback could begin another correction.
In this analysis, CCN reveals what’s next for the token as the new month advances.
Chainlink Stumbles
Chainlink is facing some technical headwinds, according to on-chain data.
A closer look at the In/Out of the Money Around Price (IOMAP) indicator suggests that a major resistance zone is forming.
The IOMAP tool, which measures unrealized profits and losses across wallet addresses, helps identify areas where traders are more likely to buy or sell.
Typically, clusters of wallets holding at a loss create strong resistance, as those holders may sell to break even.
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Data from IntoTheBlock shows that LINK is running into a significant barrier between $14.93 and $15.37, with more than 21,000 addresses holding a combined 94.28 million LINK tokens.
With so many wallets underwater in that range, any price push toward it could trigger a wave of selling. That selling pressure could create a wall, making it tough for LINK to break out unless buying momentum picks up sharply.
Chainlink may need a strong catalyst or fresh demand to overcome this zone and sustain a rally beyond it.
Network Activity Drops
On-chain metrics further support the bearish outlook.
The Price–Daily Active Addresses (DAA) divergence, which tracks whether network activity aligns with price movement, has dropped sharply, falling to -49.85%.
This metric typically turns positive when user engagement rises, signaling enough participation to sustain a price rally. However, in this case, the steep negative divergence suggests a significant drop in user activity.
With fewer active participants on the network, the odds of Chainlink breaking through the $15.37 resistance level appear increasingly slim.
LINK Price Prediction: No Rebound Coming
From a technical perspective, the 4-hour chart shows that LINK has been consolidating for the last few days. However, the token will not fully recover soon.
One reason for this is the Chaikin Money Flow (CMF) position. The CMF reading has dropped below the zero signal line at press time.
This decline in the CMF reading indicates rising selling pressure. If sustained, Chainlink’s price risks falling below $12.74 support.
In addition, the Bollinger Bands (BB) have expanded. Since the BB did not contract, LINK’s price might not soon experience a quick breakout.
If that is the case, the next target for LINK could be $12.05 at the 0.236 Fibonacci pullback area. If demand for the token fails to increase, it also risks declining below $11.
On the contrary, this trend might change if the CMF rises above the zero line. Should that happen, Chainlink’s price might spike above $15.67 and move toward $20
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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