- Chainlink reflected bearish structure and momentum.
- The CMF showed significant buying pressure, but spot demand was weak in the short term.
Chain link [LINK] was in a bearish trend most of the time from May to July. On July 21, a break in the market structure in the one-day time frame was noticed as LINK climbed past $14.75.
The gains from mid-July were wiped out during trading last week. The momentum and volume indicators disagreed, but a price increase was expected.
The lows in the range could save the bulls
Source: LINK/USDT on TradingView
Since April, Chainlink has been trading within a range of $12.73 to $18.68. The bearish sentiment in early July saw the price drop to $11.07, with a few days of trading at $12.33. Therefore, $12.3 could be a support zone that triggers a reversal in the coming days
The CMF was above +0.05 even though the price has fallen in recent days. This showed that there was generally buying pressure. However, the RSI fell below neutral 50, signaling a bearish momentum shift.
Together they presented conflicting signals. Overall, given the range lows, bulls could initiate a recovery in the coming week, but caution is advised.
The short-term Chainlink price forecast is bearish
Over the past three days, the price of LINK has slowly fallen. Open Interest also fell from $152 million to $143.7 million. The OI and the price drop together indicated bearish sentiment.
Read Chainlink’s [LINK] Price forecast 2024-25
Speculators lack confidence and were unwilling to go long on the token.
The spot CVD also showed a downward trend. Demand was weak and futures traders were bearish. Together, this indicated that Chainlink could suffer further losses.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.