Chainlink is facing continuous downward pressure, with $11.40 being a key support level. If it breaks below this level, the price could fall to the $10 support level.
Technical analysis and derivatives data also indicate a trend of weakness over a longer period; if $10 cannot be held, $8.43 will become a support level.
Since the price fluctuations of Chainlink have intensified, this widely watched DeFi token has attracted a great deal of attention. After the recent round of price movements, LINK has entered a critical phase, which has also raised questions in the market about whether it is preparing for a rebound. Although the fundamentals are still stronger than the price performance, fundamentals do not always translate immediately into price increases. As the price of LINK approaches an important technical range, the market will be watching to see if Chainlink can regain bullish momentum this month and recover to $15.
LINK Prices face significant selling pressure
After the recent rebound, the price of LINK seems to be losing its bullish momentum, with lower highs and lows forming in the trend. Sellers continue to exert significant pressure, and the price is approaching an important support range. Currently, the trading price of LINK is around $11.93, which is below the upward trend line. This breakdown indicates that the short-term trend has weakened, but the next move will depend on how the price reacts at this nearby support level.
RSI also reflects a clear change in momentum, which is now in a downward trend. This indicates that selling pressure is still significant, but it has not yet reached the low threshold of 30. Therefore, if the selling pressure continues and LINK breaks below the support level of $11.39, it could test the key area around $10. On the upside, if LINK regains momentum and improves the short-term outlook, prices could rebound to $14. For now, the reaction around $11.40 is crucial; only after a rebound holds this range can a recovery trend be triggered.
The decline in open positions exacerbates market uncertainty.
In addition to the weakening price structure, another significant change has occurred in the derivatives market of Chainlink. Data on open contracts of Coinglass shows that open positions increased significantly over the past few months, before beginning to decline after a rebound from the end of September in LINK.
Open interest has decreased from $900 million to $570 million, reflecting a significant reduction in derivatives exposure. The simultaneous decline in prices and open interest indicates that traders are reducing their exposure as market momentum weakens. This may mean that leveraged positions are being closed out, and market speculation has diminished.
Conclusion: What will happen next to the price rebound of Chainlink?
The price and derivative data for Chainlink both indicate that momentum is weakening, while both RSI and the open interest are on the decline. The pivot support level at $11.40 is a key level that will need to be watched in the coming days, and if the price can continue to recover from the trend line that was broken below, the outlook may improve.
If the price of LINK holds its support level and regains momentum, it is possible for the price to rise towards $13.58, with the next major resistance level at $16.55. Furthermore, if LINK clearly falls below $11.40, a rebound could expose support levels around $10. A lower pivot point of $8.43 might become a potential downward target.
Currently, the next move of Chainlink depends on whether buyers can hold the support level, or whether sellers will continue to push down prices. If the daily close can be confirmed above these key levels, accompanied by changes in trading volume and open interest, it will provide clearer signals for the next trend.
