Chainlink's (LINK) price surged by 19% since a ten-month low on August 5, forming an ascending channel. However, recent declines have pushed the price to the lower boundary of this pattern.
If the support line fails, LINK could revisit the August 5 low. The current trading price is $11.19, with a 5% drop since Monday due to increased selloffs.
An ascending channel features price moving between two upward-sloping lines, with resistance at $12.70 and support at $10.98. Falling below the support line weakens the uptrend, indicating potential continued downtrends.
The Chaikin Money Flow nearing its center line shows weakening demand for LINK. A decline below the zero line suggests selling pressure outweighs buying pressure—a bearish signal for continued downtrends.
LINK’s On-Balance-Volume has also declined by 1% since Monday, reinforcing the indication of increased selling pressure. This metric measures buying and selling momentum.
The recent price and daily active address (DAA) divergence confirms declining demand, with a negative DAA divergence of -61.2% hinting at further price declines. Should the support level break, the next target is $8.08.
If market demand surges, LINK’s price could rally to $12.33, reversing the current downtrend.
