After a series of adjustments, Chainlink (LINK) is approaching a significant resistance area around $12.5 – a region that was a strong support in the past. This could be a retest of the area that has been broken, now becoming a new barrier, reflecting hesitation from the buyers.
If the buying pressure is not strong enough, LINK risks deeper corrections. In the context of a directionless market, this decline is a consequence of the previous hot uptrend.
Since hitting $16, LINK has not created a new peak – indicating that the upward momentum is gradually weakening. The inability to break the downtrend line at $12.5 further reinforces the weakening signal about the market structure.