- Chainlink price drops for the second day, extends pullback from two-week high after failing to break 200-day EMA.
- Momentum indicators support bearish bias, targeting nine-week-old trendline support
- Five-month horizontal zone remains a tough challenge for LINK buyers, even if they clear the key EMA hurdle.
- Bearish gramophone pattern indicates gradual downside on four-hour chart.
Chainlink (LINK/USD) refreshes its intraday low near $14.15 during Thursday’s European session as it extends the previous day’s reversal from the 200-day Exponential Moving Average (EMA). The pullback also gets support from the 14-day Relative Strength Index (RSI) near the 50.00 level and weak signals from the Moving Average Convergence and Divergence (MACD) indicator, both suggesting a continuation of the latest fall.
LINK/USD: Daily chart points to limited downside room
Source: Tradingview
Chainlink sellers extend their pullback from the 200-day EMA toward an upward-sloping trendline support from early April, near $13.15 at press time, backed by a neutral RSI and weak MACD signals.
However, sellers can only target March’s low around $11.90 if they break below the $13.15 trendline support. After that, a broad horizontal support zone between $10.05 and $10.20, formed by lows since late 2024, followed by the $10.00 level, acts as the last defense for LINK buyers before prices could fall to the August 2024 low at $8.12.
On the upside, the 200-day EMA near $15.75 blocks immediate Chainlink gains. Above that, the 61.8% Fibonacci retracement of November–December 2024 near $16.85 stands as the next hurdle. However, the $17.90–$18.00 zone, marked by levels since January, is a tough challenge for LINK buyers, a clear break here would give buyers control and could push prices toward the $20.00 psychological level.
LINK/USD: Four-Hour chart signals gradual downside
Source: Tradingview
On the four-hour chart, a month-old “bearish gramophone” pattern, the recent break below the 50-bar EMA, and a week-old trendline near $14.40 keep sellers active on LINK/USD. Bearish MACD signals also support the downside bias.
However, the 61.8% Fibonacci retracement of LINK’s April-May rise near $13.15, along with a downbeat RSI, may slow the fall before pushing sellers toward the gramophone’s bottom at $12.10 and then lower daily chart levels.
On the upside, Chainlink buyers must clear the $14.40 support-turned-resistance area to recover losses. Even then, the gramophone’s top near $15.65 acts as a strong resistance before the daily chart levels come into play.
Overall, LINK/USD looks set for more downside, though the decline may be slow and uneven.
