Chainlink (LINK) faces sustained bearish pressure, trading below $10 as analysts identify a potential bear flag formation on its 12-hour chart. The cryptocurrency is struggling beneath key daily Simple Moving Averages, which act as strong overhead resistance. Failure to break above the $10 level could see LINK decline toward $8.20, while a sustained move above it would shift sentiment to bullish.
Chainlink (LINK) has resumed weakness after a sharp decline, with a potential bear flag forming on the 12-hour chart. The price remains below key moving averages, keeping the bearish trend intact despite a recent bounce.
At the time of writing, LINK is trading at $8.60, according to CoinMarketCap data. The token has declined 4.16% over the last 24 hours, with a daily trading volume exceeding $243 million.
Crypto analyst CryptoPulse stated that “LINK appears to be forming a bear flag on the 12-hour chart.” The immediate question is whether the price will fall toward $8.20 or if buyers can push it past the crucial $10 level.
From a technical perspective, LINK continues to face pressure as it trades below all major daily Simple Moving Averages. Resistance comes from the 20-day SMA at $8.72, with a stronger zone created by the 50-day SMA at $10.26, the 100-day SMA at $11.67, and the 200-day SMA at $15.93.
Momentum indicators are flashing caution signals, though mixed ones. The Relative Strength Index is at 43.30, indicating bullish momentum has yet to gain ascendancy.
On the MACD side, the momentum is negative but shows a sign of recovery. The MACD line currently sits at -0.3397, slightly above the signal line at -0.4609.
If LINK is not able to rise above the upper boundary of the bear flag and continues trading below $10, the chances of another dip increase. A strong close above $10 on the higher timeframes would diminish the bearish case and may lead to new buying interest.
