Chainlink Price Plunges: $10 Support Critical
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Chainlink (LINK) has experienced a significant price drop of over 16% after failing to break the $18 resistance level. This rejection has raised concerns about weakening bullish momentum and increased downside risk. Analyst Ali Martinez points to a potential retracement towards the $10 support level, a key psychological and structural support area. The inability to maintain higher price levels signals a possible deeper correction, especially if volume and momentum don't recover. The $14 level is another crucial support; failure to hold above it could accelerate selling pressure. The current situation is characterized by fading momentum and growing fear, despite continued efforts by bulls to defend key demand zones. The recent pullback shows increased volume, suggesting profit-taking or renewed selling interest. The $14.80-$15.00 support zone, previously tested in April and May, is now critical. A breach below this could lead to a further drop towards $13.20 and ultimately $10. Reclaiming the $16 zone and flipping the 200-day EMA into support is crucial for restoring bullish sentiment. The next few trading days are decisive for Chainlink's short-term trajectory, with the $10-$12 range likely to be tested. The overall market uncertainty, influenced by central bank actions, inflation data, and geopolitical developments, adds to the complexity of the situation. While some anticipate a bounce, the current technical structure suggests caution. The coming days will determine if a local top has been reached or if a high-risk, high-reward entry point will emerge.
