- Chainlink has breached its long-term ascending trendline, confirming a shift in market structure and triggering a new support watch at $10.
- The loss of key Fibonacci retracement levels at $12.24 and $9.98 positions $7.47 as the next major technical demand zone.
- Indicators show bearish momentum, with EMA crossover and strong -DI and ADX readings supporting further downside movement in the current trend.
Chainlink encountered a notable technical event as the price broke below its rising trendline. This move signals potential shifts in support levels, setting up key target areas near $10 and $7.50.
Trendline Breakdown Shifts Support Levels
A tweet by a noted crypto analyst, Ali Martinez, stated that Chainlink broke below a long-standing ascending trendline. The tweet mentioned that the next key support levels are positioned at $10 and $7.50. The chart showed an extended pattern that supported the asset through several corrections.
Technical analysis indicates that the recent failure to maintain the rising support has altered the structural base. The ascending trendline had been a steady barrier during multiple trading sessions. The evolving pattern requires careful observation as it may set the stage for further retracement.
Fibonacci Levels Confirm Structural Shift
The price action also confirmed a decisive break below an important Fibonacci retracement level at $12.24. The retracement was calculated from a swing low near $5.17 to a high around $28.98. The breakdown occurred alongside a move beneath the 0.618 Fibonacci level at approximately $9.98. These levels now serve as areas of potential demand.
There is clear evidence that Chainlink has shifted from a strong demand zone to a resistance zone. The recent breakdown corresponds with a failure to retest previous support near $12.73. As a result, technical traders now consider the 0.786 retracement, located near $7.47, as an additional support checkpoint. The analysis draws on defined retracement levels that have been respected throughout recent trading sessions.
Technical Indicators Confirm Bearish Momentum
The Moving Average Cross, using the 9-day and 21-day EMAs, reveals a downward arrangement. The 9-day EMA remains below the 21-day EMA, which reinforces a bearish structure. This arrangement supports traders who are watching for further price declines. Moreover, the consistent lower highs add to the observation of a sustained downtrend.
Additional technical indicators further validate the bearish structure. The Directional Movement Index shows that the -DI line stays higher than its counterpart. An increasing ADX reading above 31 confirms the trend’s persistence.
The breakdown of the long-standing trendline marks a key moment for technical traders. The market structure now appears to lean toward further declines unless buyers can reverse the trend decisively. A break above $13.50 is required for the asset to regain control.
Chainlink traded around $11.34 with a 24-hour volume nearing $697 million at the time of writing. The short-term trend has seen a decline of 2.14% over 24 hours and a 16.57% drop over the past week.
