Chainlink (LINK) has been going through a rough patch lately as it grapples with a persistent downtrend. Despite some positive developments in the crypto space, LINK’s price is following a downward trend, failing to benefit from the positive news.
An important event that did not bring about the expected increase in LINK’s price was the successful completion of Swift’s trial with Chainlink. Interbank messaging giant Swift has conducted trials involving Chainlink, which crypto- He had created a rumor in his community.
However, instead of driving LINK’s price to new highs, it primarily created increased social volume and sentiment among traders.
Chainlink Short-Term Support Zone Is Breaking Up
Looking at the price charts in a new analysis, it appears that LINK failed to maintain a short-term support zone formed by bullish traders last week. The weekend witnessed a decline in prices and an increase in downward pressure that weakened previous support.
On the 4-hour chart, a block of bearish orders was clearly visible around the $6.2 zone marked in red. Although Chainlink prices briefly broke through this level on September 7 and even retested it as support, ultimately turning it into a bullish breakout block, the bulls struggled to maintain the momentum. Ongoing selling pressure over the past few weeks has ultimately pushed LINK’s value below the critical $6.2 mark.
Bearish Indicators Point to More Losses
As of now, Chainlink is trading at around $5.91 according to CoinGecko. It represents a 0.6% decline in the last 24 hours and a 1.2% decline in the past week. Both price action and technical indicators appear consistent with LINK likely facing further losses in the near future.
Going forward, the next important support levels to watch are $5.7 and $5, as shown on the higher timeframe price charts. altcoinThe probability of falling to these levels in the coming days and weeks is increasing.
LINK Whales Accumulate Amid Bear Trend
Despite the prevailing downward trend, a separate report highlights a notable development. Holding between 10,000 and 1,000,000 Chainlink tokens, Chainlink whales took advantage of the recent decline in the asset’s price, expecting a future recovery in the altcoin’s value.
Typically, this type of whale accumulation tends to create a positive sentiment among traders as it increases the demand for LINK on various exchanges. However, as social metrics continue to overshadow price performance in the Chainlink ecosystem, it remains to be seen whether these bullish catalysts can ultimately rescue LINK from its current downtrend.