Disclaimer: The results of the following analysis are the sole opinion of the author and should not be considered as investment advice

Chainlink bulls pinned their hopes on $15.30 being defended in early February and may have started a long-term rally. Their hopes were dashed, however, when the $18 resistance zone simply did not budge. Broader market sentiment is not particularly optimistic either. Quite the contrary, it has been fearful over a longer time horizon. Like many other cryptocurrencies, Chainlink is in a downtrend.

Links – One Dimension

Chainlink: Range lows give faint hope to bulls

Source: LINK/USDT on TradingView

At the time of writing, LINK is trading slightly below its range low (blue) of $13.50. In the past, this was an area where investors sold clothes on LINK to go "all-in". In mid-July, visits to the area were followed by a strong recovery to the range high.

However, the $29 and $18 areas (red boxes) have become areas of resistance since November. If demand can push prices back above $14, these areas will put significant selling pressure on the asset.

On the other hand, a drop below the $13.50 area could turn into a supply zone in the coming days.

Fundamentals

Chainlink: Range lows give faint hope to bulls

Source: LINK/USDT on TradingView

The RSI has created a series of higher lows, although the LINK has created lower lows – a bullish divergence. This divergence could lead to a price recovery above $13.50. However, the RSI is still below the zero line – momentum is not yet in favor of the bulls. This is a similar story regarding AO – momentum is bearish but has weakened slightly in the past month.

OBV has also formed higher lows over the past nine months – meaning there is buying volume even over a longer time horizon. But OBV has been falling for the past two months – and the next move in OBV could set the tone for the next few weeks. CMF at -0.04 is in neutral territory, but close to indicating capital outflows from the market.

Conclusion

The inability of the bulls to defend the range lows is a sign that the shorts are laying down – and they are coming into town in force again. Indicators suggest that bearish momentum may be waning, but this is a weak sign and another wave of selling could be in the offing. In the south, $11.96 and $9.8 could provide support. A daily close above $13.60 could see another rally, but the trend remains bearish.