Chainlink Price Dips to $22, Will $21 Support Hold?

Chainlink price is facing renewed selling pressure after the bulls failed to hold critical levels. As of press time, LINK is being sold across exchanges at $22.17, with a 2.87% discount over yesterday. The market cap stands at $15.04 billion, while 24-hour trading volume sits at $1.17 billion. Wondering how the LINK price has performed over the past 24 hours? The token has ranged between $22.06 and $23.18, showing volatility around support.

It is worth mentioning that, despite the struggles on the price chart, Chainlink continues to push forward on the fundamentals front. The Chainlink Reserve recently added 43,937.57 LINK, boosting its total holdings to 237,014.07 LINK. More importantly, Chainlink has also secured an integration with the Bureau of Economic Analysis, which will feed core U.S. macroeconomic data.

Why is LINK Price Dropping?

A mix of profit-taking and rejection near resistance has led to this downturn. The previous rally attracted sellers eager to book their gains, especially as LINK price struggled to hold above $23. Market conditions have tilted toward caution, with sentiment going defensive despite positive fundamental news.

Chainlink Price Analysis

Now that we are well aware of the latest price trends, let us dive into price analysis, without further ado. The latest rejection at $24.85 triggered a wave of stop-loss orders and algorithmic selling, thereby dragging the Chainlink price below the $23.00 support. That breakdown has charged-up sellers, who are now eyeing $21.04.

Talking about indicators, most of which are bearish. The MACD histogram sits at -0.49, which further confirms the downtrend. LINK also trades below its 30-day SMA at $23.47. On top of that, the price is testing the 38.2% Fibonacci retracement at $23.48, which has become the immediate resistance. However, a close above this level could ease selling pressure and pave the way for consolidation.

The Bollinger Bands show narrowing volatility, with price hugging the lower band around $22. This setup often precedes sharp moves, meaning the next sessions could see either a breakdown toward $21.04 or a rebound if bulls reclaim $23.48. If the uptrend remains intact, the Chainlink price could also target the $26.49 mark.

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