The chart shows the price development of Chainlink (LINK) against Tether (USDT) on the 1-day timeframe (1T) on Binance.
Technical Analysis:
1. Fibonacci Retracement Levels:
• Key Fibonacci levels are marked, with 0.618 at around $24.07 and 0.5 at around $22.44 acting as major resistance levels.
• The current price is below the 0.236 level ($18.13), indicating ongoing weakness.
2. Downtrend:
• The price is in a clear downtrend, as seen by the lower highs and lower lows.
• The dashed line suggests a possible continuation of the downward movement.
3. Support Levels:
• The $15.46 area (previous local low) could act as strong support.
• If this level breaks, further selling pressure could emerge.
4. Volume Analysis:
• Trading volume is relatively high, especially during strong price moves, indicating active market participants.
• The recent price drop is accompanied by increased volume, suggesting strong selling pressure.
Conclusion:
The chart exhibits a bearish tendency, as the price remains below key Fibonacci levels and follows a downtrend. If the $15.46 support zone holds, a potential rebound could occur. A breakout above $18–$19 would be an initial bullish signal.