With LINK slipping back toward the $16 range, the market is once again testing structural support zones. At the time of writing, LINK is trading at $16.01 with a 24-hour loss of 0.71%, and momentum indicators reflect a cautious stance.
The trading chart shared by trader Rai illustrated a well-executed short trade, with LINKUSDT.P moving exactly from the short entry zone of $17.50 to a take-profit target of $16.60. This move came after price failed to hold above the previous resistance structure and retraced sharply, validating the trade’s design.
The risk-reward setup placed the stop-loss just above the invalidation line at $17.66, while maintaining tight entry discipline. The setup was based on a visible rejection at the resistance zone, which quickly accelerated downside momentum.
Source: X
The structure revealed multiple lower highs, and bearish candles formed in succession once the resistance was retested. The red-shaded zone on the chart captured the stop-loss range while the green zone defined the target area.
Once the price broke below the interim support near $17.40, momentum carried it to the planned exit around $16.60. This movement reinforces the bearish continuation bias unless the token manages to form a new higher high or reclaim the $17.50 mark with strong volume.
Chainlink’s 24-hour performance between August 2 and 3 showed both volatility and short-term recovery signs. The session began with a price dip from around $16.20 to $15.80, followed by a brief recovery above $15.95. However, the movement lacked sufficient volume to confirm a trend reversal. The price action displayed signs of support near $15.75, but the lack of follow-through prevented a decisive move.
Source: BraveNewCoin
Later in the day, LINK dropped again toward $15.60 before rebounding toward $16.01 by the end of the session. The daily trading volume reached $471.89 million, reflecting moderate activity. Market participants appeared to buy the dip, but without a surge in demand or positive structural changes, the bounce remained shallow.
The market cap stands at $10.85 billion with an available supply of 678 million LINK tokens. Buyers need to hold above $16.20 and reclaim prior resistance for a broader recovery phase to emerge.
The daily chart from TradingView indicates LINK is testing recovery momentum around the $16 mark. After reaching a local high near $20.28 in July, the asset declined and is now attempting to stabilize near previous breakout zones.
Price bounced by 2.36% in the most recent session, showing temporary strength at $16.00. However, resistance near $19.53 remains intact, and continued lower highs suggest a broader downtrend remains in play.
Source: TradingView
The MACD indicator reflects early signs of bearish momentum. The MACD line is at 0.27 while the signal line sits higher at 0.73, resulting in a histogram reading of -0.47. This crossover suggests weakening bullish pressure.
RSI has also fallen to 44.32, confirming reduced upward momentum. Without confirmation of a reversal—such as price holding above $17.20 or MACD flipping positive—Chainlink may continue to range or trend lower in the near term.
