The crypto market is not accustomed to turbulence, and chain links (links) are now caught up in the storm. As the bearish forces tighten the grip, the price is at risk for a critical $12.5 support level test that will determine its fate in the coming days. There are several factors that threaten to derail the recovery outlook, including sales pressure and an increase in weaknesses in the broader market.
Link's recent recession occurred after the consolidation period, during which the assets struggled to gain upward momentum. Now, with prices collapse and focusing on $12.5 support, the bets are higher than ever. For investors, this level represents an important battlefield that serves as a springboard for rebounds or further losses.
Market Pressure Mount: Can links avoid breakdowns?
ChainLink's price action is about the story. After the period of integration, the links are divided into negative aspects from their scope, indicating a shift in market sentiment. The token is currently hovering near a support level of $12.5. This is an important zone that has historically functioned as a range of recovery. However, the current breakdown suggests that this level may not be maintained, especially in the face of unforgiving sales pressure.
One important concern is the weakening of the market structure as links are always below the important moving average, especially the 100-day simple moving average (SMA). This shows an increasingly bearish rule, making it even more difficult for bulls to set a meaningful recovery.
Furthermore, trading volumes have skyrocketed significantly during the price decline, indicating increased sales pressure. In particular, volume has skyrocketed over 200%, pushing total cryptocurrency trading activities to over $1 billion. This massive increase during the recession further highlights seller control in the market and strengthens the bearish momentum.
Finally, the emergence of breaks in market structure and order block indicators imply significant changes in trend dynamics. In other words, the market structure has moved from a bullish stage to a bearish stage. Destruction of the market structure often indicates that buyers have weaker control and sellers can gain an advantage.
ChainLink's definitive moment
ChainLink finds itself in the critical moment when a $12.5 support level serves as the final line of defense against deeper fixes. Bearish signals are hard to ignore, but the strong basics and resilience of tokens provide a faint hope. The ability of a link to avoid failure depends on its ability to hold this critical level and attract new buying interest in the face of increasing market pressure.
If $12.5 of support is not retained, Altcoin could be even more vulnerable to reductions, causing deeper fixes to other levels of support, such as $11.1. However, if the Bulls intervened to protect this level, the chances of rebounding will increase and provide an opportunity to regain lost ground in the token.
