Chainlink(LINK)'s technical indicators are weakening, breaking the support line or dipping to 8 dollars.

Source: TokenPost Original Title: Chainlink ( $LINK ) Weakness Transition…Possible Drop to $8 if Support Line Breaks Original Link: The market trend of Chainlink(LINK) has once again entered a downward trend. It has fallen nearly 7% in the last 24 hours and is currently fluctuating around $12. Experts warn that if it fails to recover the resistance level of $14-15, it may face further downside risks.

From a technical analysis perspective, LINK has broken below the ascending channel supporting the medium-term uptrend, losing its upward structure. In particular, the key level of $15 is the position of the Fibonacci retracement ratio of 0.618, and the break of this support line has strengthened the market's bearish sentiment. Analyst Ali Martinez pointed out that the current price movement “could signal the beginning of a pullback to $8 in the short term.”

In the short term, the market has failed to break through the descending trend line, and selling pressure has intensified. While trading volume has increased, the downward reversal has been confirmed, but attempts to break above lack buying support. From a technical indicator perspective, both the short-term 50 EMA and long-term 200 SMA are trending downward, and the current price remains below these moving averages, indicating that there are no signs of a trend reversal yet.

The rebound situation near key support levels is crucial. LINK has reached a key support range where rebounds have historically occurred. If it can hold this level, a rebound may come after a short-term adjustment. However, if this range is also broken, $10 and $8 will become the next downward targets. Ali Martinez also considers $13.50 to be a significant resistance level.

However, there are differing opinions on the long-term outlook. Some analysts believe that Chainlink still has over 240% upside potential in the medium to long term. Recently, Grayscale's move to convert its private LINK trust into a spot ETF has also brought positive reactions to the market. However, on-chain data shows that in recent weeks, 31 million LINK has flowed out of whale wallets and been redistributed.

Chainlink has entered a technical adjustment phase after a recent rapid rise. The guarding situation of key support levels will determine the direction of the next market wave, and the strategies of short-term investors and medium to long-term holders are starting to diverge.

Market Interpretation

Chainlink has lost the key indicators supporting its upward trend, and the likelihood of a technical adjustment to $8 is increasing.

Strategy Highlights

Whether the support line has been broken is the key to subsequent investment judgments. Before reclaiming the 14-15 dollars, a conservative approach may be more beneficial.

Terminology Explanation

• Fibonacci Retracement: A technical analysis method used to predict the price retracement levels within an uptrend or downtrend.
• EMA, SMA: respectively represent Exponential Moving Average and Simple Moving Average, used to determine trend direction.