Chainlink Price Faces Pressure After Breaking Key Support Level

Chainlink (LINK) has slipped 1.87% in the last 24 hours, dropping to around $14.18 after a week marked by persistent bearish momentum. The cryptocurrency continues to slide toward a multi-year trendline that has been central to its market structure since early 2023. This decline follows several weeks of steady selling pressure, pushing LINK back to levels last seen before the most recent market reset. The broader crypto market has also weakened, losing about $0.85 billion in the past day as major assets like Bitcoin and Ethereum struggle to regain momentum.

A notable development in LINK’s price action is its break below the critical $16 support level, an area where 53.87 million LINK tokens had previously been accumulated. Glassnode’s cost basis heatmap highlights this level as a major support zone, emphasizing the importance of its role in Chainlink’s recent price stability. Losing this zone suggests that the market could face increased difficulty in regaining bullish traction in the short term.

At the moment, LINK is consolidating between $14.00 and $14.50, with resistance forming around $15.50 and $17.00. If the token fails to hold the $14.00 support, a move toward $13.00 becomes likely. However, reclaiming $14.50 could open the door to testing higher resistance levels again. Despite the short-term weakness, long-term sentiment surrounding Chainlink remains optimistic, especially if the price stabilizes and regains upward momentum.

Technical indicators point to continued caution. The MACD shows bearish movement as the MACD line remains below the signal line, while the histogram signals ongoing negative momentum. Meanwhile, the RSI at 41 suggests that LINK is nearing oversold territory, potentially setting the stage for a relief bounce if market conditions improve.

Overall, Chainlink’s price remains under pressure, but long-term prospects stay favorable should the market begin to recover.