LINK Traders Watch $7.92 Closely as Sellers Tighten Control
Chainlink (LINK) continues to show signs of technical strain on the daily chart, with the price steadily compressing toward a major support level as momentum tilts in favor of sellers.
The broader structure reflects a corrective phase that has deepened in recent sessions, and unless buyers regain control soon, LINK risks extending its pullback into lower liquidity zones.
While the trend remains pressured, subtle shifts in momentum suggest that a decisive move may be approaching.
Price Structure Weakens as LINK Trades Below Short- and Medium-Term Trend Averages
LINK is currently trading beneath its short-term and medium-term exponential moving averages, reinforcing the idea that the prevailing momentum favors the downside. The shorter-term average has also rolled beneath the longer one, a development that often signals increasing bearish control.
Daily chart for LINK/USD (Source: GeckoTerminal)
More importantly, recent daily closes have consistently failed to reclaim those dynamic resistance levels. This suggests that rallies are being sold into rather than accumulated, and bulls have not yet demonstrated the strength needed to reverse the short-term trend.
For the structure to improve meaningfully, LINK would need to reclaim the $9.09 resistance level and establish sustained closes above it. Such a move would indicate renewed demand and could open the path toward higher resistance at $11.98 and $12.39, where stronger supply historically enters the market.
Until that happens, the market remains technically defensive.
Momentum Indicators Reflect Bearish Pressure but Hint at Slowing Downside Acceleration
Momentum readings reinforce the bearish tone. The RSI has moved into the lower range, signaling that sellers are firmly in control. While not deeply oversold, the indicator is approaching territory where short-term relief bounces often occur. This suggests that downside momentum may be maturing, even if the broader bias remains negative.
At the same time, the MACD remains below its signal line, confirming the prevailing downward momentum. However, the histogram has been gradually contracting. This subtle shift indicates that although the price is still declining, the intensity of the selling pressure may be moderating.
Such conditions often precede consolidation phases or short-term countertrend moves—but without a structural breakout, they do not yet confirm a trend reversal.
The $7.92 Support Zone Emerges as a Decisive Battlefield for Bulls and Bears
The most immediate focus lies at $7.92, a key horizontal support level that now stands as the final structural defense before deeper downside opens up. A clean breakdown below this zone would likely trigger accelerated selling and a move toward lower liquidity pockets.
Order book data adds critical context. A significant bid wall around $7 suggests that buyers are prepared to step in below current levels. If the price falls toward this area, it could act as a temporary cushion. However, if that liquidity cluster fails to hold, the market could quickly extend toward larger bid walls around $5 and $4.9—levels that represent substantially deeper retracement scenarios.
Conversely, if $7.92 holds and attracts sustained buying interest, it could form the foundation for a relief rally back toward overhead resistance.
Overhead Liquidity and Ask Walls Could Define the Next Breakout Attempt
On the upside, LINK faces notable liquidity barriers. A visible concentration of sell orders sits around $10.5 and $11.23, with an even larger wall near $15. These stacked ask zones highlight significant overhead supply that bulls must absorb to regain higher ground.
Should LINK reclaim $9.09 and build upward momentum, clearing $10.5 would be a critical milestone. Breaking through successive sell walls could create a cascade effect, pushing the price toward $11.98 and $12.39. However, such a move would likely require strong volume and renewed market-wide risk appetite.
Without that conviction, those zones may act as firm ceilings in the short term.
Long and Short Trade Scenarios as Market Approaches Inflection Point
From a trading perspective, bulls may consider waiting for confirmation above $9.09 before positioning for upside continuation. A sustained reclaim of this level, combined with improving momentum, could support targets near $11.98 and $12.39, with risk managed below reclaimed support.
More aggressive long setups could involve anticipating a bounce near $7.92, but this approach carries higher risk if support fails. Strict risk management would be essential in such scenarios.
For bearish traders, the prevailing structure favors short opportunities on rallies into resistance zones—particularly near $9.09 if rejection patterns form. A confirmed breakdown below $7.92 could present continuation setups targeting deeper liquidity around $7 and potentially lower bid concentrations if momentum accelerates.
LINK Balances Between Relief Rally Potential and Extended Correction
In summary, LINK remains under bearish pressure on the daily timeframe, with the price trading below key moving averages and momentum favoring sellers. However, slowing downside momentum and proximity to structural support suggest that a decisive move may soon unfold.
Whether LINK stages a relief bounce or breaks into a deeper corrective phase will likely depend on how the price reacts at $7.92 and whether bulls can reclaim $9.09 to shift short-term structure back in their favor.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
