The past few weeks came as a relief in the bearishness but Chainlink’s native token has surprisingly resumed selling and continued to lose momentum daily. However, it rejected a daily high with a slight bounce.

Link’s market structure remains bearish on the micro-level as it follows a lower low and lower high movement on the daily chart. The ongoing impulsive phase looks strong but will likely end any time soon.

Compared to last month, it is yet to see a major retracement move this month due to low volume inflow. Instead, the asset consolidated for days and resumed selling pressure at full speed.

Breaking below $17 on Monday, it tested $15 and traded calmly around it for three days before dipping to a daily low of $13.45. This marked its lowest trading level in the last three months. But from the look of things, more drops are expected as it is yet to reach an oversold condition.

The $11 level is considered the main target for the bears. Once selling reaches this level, we can expect an interception from the bulls’ side before recovering. A continuous push from there could lead to a trend shift. Currently, it trades at $14.6.

Source: Tradingview

The closest support level right now is $12.8. Extending bearish towards the $11 level, we can anticipate a quick buyback. Failure to hold above this level could result in a dip to $10. Below this key support lies $9.

If the daily low holds as support, a bounce above $15.4 could bring a retest at $17.1 A climb above the $19.8 resistance could activate a new bullish move to $22.3 and $27.

Key Resistance Levels: $15.4, $17.1, $19.8

Key Support Levels: $12.8, $11, $10

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: skorzewiak/123RF // Image Effects by Colorcinch

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