Chainlink (LINK) price is trading around $11.41, down 0.91% for the day and below the significant resistance level at $11.72. The last support level at $11.20 is under pressure from bearish sentiment and weak liquidity, increasing the risk of further decline. From the September highs at $13.60, LINK has lost a significant portion of its gains, forming a sequence of lower highs and lows, indicating deteriorating momentum. The current situation in the cryptocurrency market is also negatively affecting LINK's price. Investors are focusing on inflation, price fluctuations in the energy sector, and potential changes in US interest rates. Expectations that the Federal Reserve may maintain high interest rates are reducing demand for riskier assets, including cryptocurrencies. Additionally, uncertainty surrounding regulatory initiatives in the US adds risk for traders, as delays in decision-making may weaken expectations regarding regulatory clarity.
According to technical indicators, Aroon Up has dropped to 7.14%, indicating weakening bullish control. If the support level at $10.94 does not hold, the next support will be at $10.16, and further decline may lead to a target of $9.38. The market situation requires buyers to return to the $11.72 level to initiate a new round of upward movement towards $12.50. Support in the $10.94–$11.20 zone and resistance at $11.68–$11.72 will be key for further developments. On the 4-hour chart, LINK's price is slightly below the central line of the Bollinger Bands at $11.44, with the upper band approximately at $11.68 and the lower band at $11.20. The narrow distance between the bands reflects reduced volatility after a sharp drop from the September high. The current price continues to fluctuate within the $11.20–$11.70 range, creating a short-term consolidation range. Closing above the central line could be the first sign that buyers are beginning to regain control. A breakout above $11.68–$11.72 will be critical to test the psychological level of $12.00.
High liquidity concentration is observed in the $11.00–$11.15 range. CoinGlass liquidation technology shows that the strongest lower cluster is concentrated near $11.05, with additional liquidity extending to $10.90. Large liquidity concentrations can attract the price as traders target areas where leveraged positions may be forced to close. A drop below $11.20 could accelerate the decline to $11.00 if the liquidation of long positions exerts mechanical selling pressure. Currently, support is in the $10.94–$11.20 zone, while the first resistance is in the $11.68–$11.72 range. A decisive close outside these boundaries could determine whether LINK's correction will extend to $10.16 or a new attempt to move towards $12.50 will begin.
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