Chainlink remain subdued facing resistance at MA-20 following a drop in open interest

Traders Union
All News
Crypto News
Chainlink slips 0.14% this week

Highlights

Chainlink remains under sustained selling pressure, trading well below key moving averages and confirming a bearish trend.
Momentum indicators on the weekly chart are distinctly bearish and reflect persistent negative sentiment with oversold conditions.
LINK is likely to consolidate between $7.60 and $9.30 next week, with further declines favored and minimal rebound probability.

Institutional participation and product launches offset by reduced futures interest this week

CME Group launched cash-settled LINK futures on February 9, 2026, expanding access to regulated derivatives for institutional investors and supporting broader price discovery alongside the Grayscale GLNK ETF, which had accumulated over 1% of LINK's supply by March 2026. Chainlink was also selected as the official oracle provider for Ondo Finance’s Global Markets, delivering real-time price feeds for tokenized US equities to Ethereum and enabling new collateralization mechanisms in DeFi protocols. Additionally, major institutions including Visa, Fidelity International, ANZ, and China Asset Management completed a cross-border settlement pilot using Chainlink infrastructure under the Hong Kong Monetary Authority's e-HKD initiative, while open interest in LINK futures saw a notable reduction, reflecting more cautious market sentiment.

Bearish momentum intensifies as oversold signals prevail through the week

On the weekly chart, LINK remains firmly in a bearish trend, trading well below all major weekly moving averages: MA-20 at $12.38, MA-50 at $15.44, and MA-200 at $12.39. The nearest dynamic resistance sits at the MA-20. Technical indicators reinforce the negative tone — the MACD, ADX, Bull/Bear Power, and Awesome Oscillator all signal pronounced bearish momentum, while RSI hovers at 31 and both Stochastic RSI and CCI indicate oversold conditions. Weekly support is found at $7.60, with resistance at $9.30 and $12.38.

Lower consolidation expected as weak momentum sustains bearish outlook next week

For the next 5–7 trading days, Chainlink is expected to remain under pressure, consolidating within the $7.60 to $9.30 range. With no significant buy signals detected by the main weekly momentum indicators and continued negative sentiment, the probability of a rebound is below 20%. If LINK manages to break above $9.30, a brief recovery could emerge, but strong resistance persists at higher moving averages. Conversely, a drop below $7.60 may trigger accelerated selling, potentially moving the price toward new lows.

Jainam Mehta, market strategist, notes that Chainlink closed the week with clear bearish momentum, ending at the bottom of its range and well below major moving averages. He observes that despite institutional adoption news and LINK's role in major fintech projects, technical indicators remain decisively negative, with oversold readings yet to trigger buy signals. Mehta sees room for further consolidation between $7.60 and $9.30, barring a break above resistance. "Until we see a clear shift in momentum, I am staying defensive and watching for a potential capitulation move if $7.60 fails to hold."

Last time, analysts noted that Chainlink exhibits short-term bullish momentum above its 20-day moving average, but remains constrained below key medium- and long-term averages, with mixed signals from momentum indicators including a neutral-low RSI, weakening bearish MACD, and strong sell from the Stochastic RSI. Immediate support is located near $8.37, while resistance around the 50-day moving average limits breakout prospects, making rangebound consolidation with downside risk the prevailing near-term outlook.

Source of Data: LINK Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.