Disclaimer: The findings of the following article are the sole opinions of the writer and should not be taken as investment advice
The Chainlink [LINK] market has been moving to its own tune. The Bitcoin market has had only a marginal impact on the standing of the coin. After moving within a restricted range the value of LINK has broken down and has been trading at $11.72, at press time. However, the fall has given rise to a bearishness which may further push the price of the digital asset down.
Chainlink one-hour chart
The above chart of LINK indicated the value to be restrained between $11.97 and $12.78. Although the price surged on 27 December, the value quickly retraced to this level and has now been breaking down from the level. There have been various support levels going down and the selling pressure indicates that LINK may not be able to find support at the current $11.70 level.
The price has been trading at the $11.70 level currently but according to the Relative Strength Index, it has been approaching the oversold zone. Its current value has been close to 35 and was still facing lower, indicating a prominent bearishness in the market.
Whereas the Chaikin Money Flow has been noting that money has been flowing out of the LINK market as it broke down from the $11.97 price level. Although the indicator is noting a spike upwards, it has a long way to recover from the negative zone.
The level of bearishness in the market has not given way to any of the bulls. The continuous selling of the digital asset has pronounced more selling pressure in the short-term and traders’ could benefit from a short position. Once LINK breaks down from the support at $11.7, it may drop to $11.23, which would be a position to take profit.