LINK faces further downside as technical indicators flag oversold conditions: weekly report

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Chainlink falls 6.55% this week

Highlights

LINK is under sustained bearish pressure, trading below key moving averages and failing to show signs of reversal.
Momentum and trend indicators remain negative, with oversold oscillator readings and strong seller dominance confirmed.
Price is expected to consolidate between $7.18 and $7.85, with high probability of downside continuation if support breaks.

Interoperability optimism rises as Project Pangea attracts banking giants

Chainlink has announced Project Pangea, collaborating with over 47 banking consortia from Europe and South Korea that collectively manage more than $10 trillion in assets. The initiative aims to facilitate near-instant atomic settlement of euro-to-South Korean won FX transactions using regulated stablecoins and decentralized oracle technology. The project integrates Chainlink’s interoperability protocol and on-chain FX settlement tools to bridge traditional banking infrastructure with blockchain technology.

Persistent bearish signals deepen as oversold readings fail to trigger reversal

On the weekly chart, LINK is positioned in the lower part of the weekly range and remains well below its key weekly moving averages (MA-20 at $8.83, MA-50 at $13.81, MA-200 at $12.53), indicating persistent downside pressure. Momentum indicators are negative, with the weekly MACD and ADX both showing "Sell" signals, and the Awesome Oscillator supporting a bearish trend. The weekly RSI is at 34.58, and both the Stochastic RSI and CCI are flagging oversold conditions, yet no signal of reversal is present. Bull/Bear Power also remains strongly negative. Volatility for the week is elevated at 14.47%.

Range-bound outlook likely as downside risks outweigh bullish scenarios next week

For the next 7 days, the baseline scenario projects LINK consolidating between $7.18 and $7.85, reflecting recent weekly trends and volatility. Given the absence of Buy signals from core momentum and oscillator indicators, further downside or range-bound trading appears more likely, with less than a 20% probability of a bullish move. A rebound could see the price test resistance at $7.85, but a drop below $7.18 would expose LINK to further losses and possible new annual lows.

Viktoras Karapetjanc, Traders Union expert, sees this week as pivotal for Chainlink. Despite the 6.55% decline and price closing well below all major weekly moving averages, he highlights that Project Pangea marks a strong step toward bridging traditional banking and blockchain, raising long-term institutional interest. While downside momentum persists and technicals remain weak, Karapetjanc believes oversold conditions and high-profile partnerships keep Chainlink on watch for a turnaround in sentiment. He is confident that current consolidation between $7.18 and $7.85 offers tactical setups as global players take notice. "Even as technicals favor bears for now, Chainlink’s strategic partnerships and expanding institutional ecosystem put it in prime position for a renewed uptrend once sentiment shifts — I remain constructive looking into next week."

Previously it was reported that Chainlink partnered with major banking consortia in Europe and South Korea to launch Project Pangea, aiming to modernize cross-border payments via blockchain and stablecoins. With LINK now exhibiting strong downside momentum and volatility near annual lows, traders should monitor for a potential break below $7.18 as this could trigger accelerated declines and set new yearly price floors.

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

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