Will Chainlink Price Revisit $10 After Key Resistance Rejection

Key Insights:

• Chainlink price rejected at $17, testing key support at $15 amid heightened selling pressure.
• Chainlink volume surged 86% to $1.28B, but open interest fell 6.08% to $649.26M.
• Top traders on Binance favor longs, with a 3.2265 long/short ratio.

Chainlink (LINK) has struggled to maintain recent gains after failing to break above $17. With sellers regaining control, the token is testing the $15 support level, a key threshold that could determine whether the price recovers or declines further.

Chainlink Price Faces Rejection at Key Resistance

Crypto analyst Ali Martinez noted that Chainlink was not successful in pushing past the $17 resistance. After several weeks of resistance, this zone hurriedly pushed the price under $16.50. Pressure increased as the token fell towards $15, an important support level needed to minimize further price drops.

In the past, Chainlink price has relied on $15 support to bounce back and continue moving upwards. If it fails to hold this level, it could drop further and find the next notable support at $13.40. Additionally, if this zone is breached, the $10 level could come into focus, aligning with broader market concerns over potential volatility.

Derivatives Data Reflects Mixed Sentiment

Meanwhile, recent data on derivatives showed a significant increase in trading volume, going up by 86.07% to $1.28 billion. This reflected an increase in activity for speculative trading. Conversely, the open interest of futures contracts has fallen by 6% to stand at $649.26 million. Hence, it revealed that although trading has gone up, some traders are selling their positions in expectation of further price dips.

Despite the drop in open interest, there are still more long positions than short positions. On Binance, top traders currently have a long/short ratio of 3.2265, reflecting their support for the bullish trend.

Consequently, this indicated that a substantial portion of the market still anticipated a recovery, despite the recent rejection at $17. However, due to the heavy long bias, the danger of more selloffs could be greater, pushing a downturn faster if market conditions worsen.

Liquidation Data Signals Near-Term Volatility

More so, the liquidations data over 24 hours gave a mixed signal for Chainlink. Long liquidations totaled $389.88K, while short liquidations only amounted to $4.84K, giving a total of $394.72K. Despite the imbalance, many traders continue to hope for a price increase. However, a rapid fall could happen if key support levels are breached.

Moreover, 12-hour liquidations revealed that there is more pressure on long positions. $1.88M in long positions were closed compared to $375.9K in short positions. Consequently, there is an increased risk of volatility as traders react to changing market trends.

Path to Recovery Hinges on Key Levels

Despite the bearish trend for Chainlink price, analyst Traderrocko stated that its break above $14.00 could lead to a rally. The data revealed that LINK managed to overcome a major trendline that had been limiting its rise for a while.

LINK price now targets the $20–$26 range, contingent on holding above $15. That level has acted as a pivot in recent months and will determine the trend direction. A breakdown would cancel the bullish structure and risk further losses.

Meanwhile, LINK’s broader trend remains supported by bullish chart patterns. A recent inverse head and shoulders formation, combined with macro tailwinds and RWA token narratives, has fueled optimism.

Chainlink also reclaimed the 20-week SMA at $16.99, now serving as near-term support. If momentum holds, bulls may target the upper Bollinger Band at $24.80. Some projections also eye a move toward $30.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.