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Leading altcoin Chainlink 
$16 (LINK) has seen a significant decline, plummeting from a peak of $25 in January to below $15 in the past month, losing 40% of its value. This downturn has prompted doubts among traders regarding the coin’s ability to recover. Current technical indicators reveal that the altcoin is facing strong resistance levels, suggesting that a short-term upward breakout is unlikely.
Reasons Behind Chainlink’s Sharp Price Decline
Chainlink’s loss in value parallels a broader market downtrend. The overall decline is attributed to the inability to sustain long-term bullish trends and speculation among traders that the market has entered a bear cycle. In this uncertain environment, IntoTheBlock data indicates that LINK may struggle to regain its price.
Notably, the In/Out of Money Around Price (IOMAP) indicator suggests that LINK is likely to encounter significant resistance at current price levels. This indicator shows that around 153 million LINK coins are underwater between $14.93 and $15.36. As the price approaches these levels, investors may be inclined to sell to cover costs, complicating a potential recovery.
What Do Technical Indicators Suggest for the Altcoin?
On the daily chart, LINK’s price has been moving within a descending channel since January 20. The altcoin attempted to find support at $18.26 and $15.19 but has not succeeded.
Currently, LINK’s price hovers near a critical support level, which could either lead to a recovery or further decline. The Relative Strength Index (RSI) indicates weak momentum, suggesting that the price may drop further. When the RSI value falls below 50, it typically signals a bearish trend. In this case, the RSI is below this level, indicating that the altcoin’s price could drop to $10.19.
If selling pressure intensifies, LINK’s price may fall to single-digit levels. Conversely, if LINK finds support at $15.18, it could set the stage for a recovery to $18.26, and potentially to $25.
