- Chainlink (LINK) has broken below its lower-time-frame trendline, indicating short-term momentum loss after a strong move.
- Immediate support sits at $20–$20.5, while a deeper correction could test $17–$18 if bearish pressure continues.
- Despite the decline, LINK maintains a broader descending channel structure, suggesting the market remains in controlled consolidation.
Chainlink (LINK) fell below an LTF trendline indicating that the momentum in the short term has slowed after acquiring recent gains. The token which was trading at $21.82 at the time of press, had a decline of 7.3% over the last 24 hours. Although the correction has occurred, the larger price structure has not been broken, and focus is on possible support areas that can characterize the next movement stage.
The 12-hour chart has indicated that LINK dropped due to inability to support itself above the resistance at $23.53.This zone capped multiple attempts by buyers to extend the previous uptrend. Meanwhile, the asset maintains immediate support near $21.72, which has served as a holding area through several prior rejections. The loss of the local trendline reflects declining momentum, yet broader technical conditions suggest that the market remains in a controlled pullback phase.
Short-Term Decline Pushes Price Toward Key Buy Zones
Following the breakdown, LINK’s chart outlines two notable areas of interest for market participants. The first lies between $20 and $20.5, where recent consolidations indicate a possible rebound point. The second, more extended zone appears between $17 and $18, which has previously attracted substantial buying pressure during deeper market retracements.
These levels mark potential stabilization regions, particularly if selling pressure continues in the coming sessions. The market action in the $20 area would indicate whether LINK would maintain its medium-term structure or would wander to the lower channel boundary. It is worth noting that the price is on a downward parallel channel that has characterized price movements since the beginning of September.
The general formation suggests that the weaknesses in the short run are still present, but the structure is not disproven. The momentum indicators still depict a slow compressing trend which conforms to the overall movement of the trendlines evident on the 12-hour chart.
Market Outlook and Technical Context
LINK’s trading range between $21.79 and $22.15 over the past session highlights subdued volatility following the recent decline. Trading volume near 336.44K supports the view of a cooling market phase as participants await clearer confirmation of direction.
In case the buyers protect the $20-20.5 area, there can be a short-term stabilization and then another effort to reach the resistance. But once the price action violates this support, the attention may switch to the area of $17-18, which is an extreme correction point in the present downward moving channel.
The technical structure indicates the element of consolidation, not a reversal. LINK remains within a defined pattern where each lower peak corresponds with reduced momentum. The next trading sessions will be crucial in determining whether the structure holds above critical support or extends toward the lower boundary of the range.
