Chain Link is facing increasing downward pressure as its price continues to decline, which could indicate the possibility of a further decline. After a period of consolidation, the bears regained control, pushing Chainlink closer to the $9.28 support level.

However, the bulls may not be ready to give up yet. With market sentiment swinging, the possibility of a bullish return appears on the horizon. Exploring key Based on technical indicators and market sentiment, we try to determine whether LINK is ready for a deeper decline or whether bullish forces could reverse the current trend and cause the price to rise.

At the time of writing, Chainlink was trading at around $10.59, down 0.10% over the past day. market The capitalization amounted to about $6.4 billion, and the trading volume exceeded $206 million, showing an boost of 0.10% and 15.36%, respectively.

Current Market Sentiment: Bearish Pressure Growing on Chainlink

On the 4-hour chart, after successfully falling below $11, LINK continues to experience negative momentum, falling towards the 100-day straightforward moving average (SMA). As the cryptocurrency approaches the 100-day SMA, it could find transient support or risk further declines if bearish the dynamics continues to grow.

Additionally, the Relative Strength Index (RSI) on the 4-hour chart has fallen below the 50% mark and is currently at 42%. The RSI attempting to enter oversold territory shows that bears are taking control and if buying interest does not pick up soon, a longer decline could be on the horizon.

On the daily chart, Chainlink is currently making a bearish move towards $7.14 trading below the 100-day straightforward moving average. The move highlights powerful selling pressure and negative market sentiment, signaling increased risk of further losses.

Finally, the 1-day RSI reflects growing bearish pressure on LINK as the indicator fell to 47% after briefly crossing the 50% threshold. This drop highlights growing selling activity and signals stronger potential for extra downward movement.

Will LINK see a recovery or further decline?

As the cryptocurrency approaches $9.28 support a level that could trigger a potential rebound, technical indicators as well as RSI still indicate powerful selling pressure. If LINK fails to hold this level, a break below could result in sustained declines, potentially testing the $7.14 support level and even lower thresholds.

However, if Chainlink manages to hold above this key support level, it could set the stage for a potential upside move towards the $11.10 resistance. A successful breakout through this resistance could trigger a significant rally, paving the way for the price to reach the next key resistance at $12.44. If the bullish momentum continues to develop, Chainlink could even reach higher levels, extending the rally beyond the current resistance points.

Featured image from Medium, chart from Tradingview.com