Chainlink (LINK) Price Prediction: Sideways Movement Expected as Downtrend Persists

Chainlink is currently trading around the $8.85 level and is showing signs of momentum on the shorter timeframes. Following our previous analysis, LINK has been under significant bearish pressure after the recent crypto market flash crash and has lost the $9.50 support level as anticipated. However, market conditions are now showing signs of stabilization as selling pressure seems to be exhausting. The daily timeframe and above are showing oversold readings while the $8.00 support zone continues to hold firm. It will be interesting to see how buyers react to these conditions in the near term. Let's examine the latest price charts to identify where the token might be headed in the coming days.

Our LINK Price Prediction Summary

• LINK is consolidating between $8.00 support and $9.50 resistance after recent selling pressure, with sideways movement likely in the short term.
• The breakdown below the critical $10.00 weekly level suggests the broader downtrend remains intact and further weakness could be ahead.
• Bulls must reclaim $10.00 to reverse the trend, otherwise a move toward $5.50 becomes increasingly likely if current support fails.

Analyzing the Charts

Short-Term Price Action

Looking at the latest 4-hour charts for LINK, we can see that after breaking below the $9.50 mark, the price found support at the $8.00 level as expected and has bounced nicely from here. The price now appears to be consolidating between the $8.00 and $9.50 range, which suggests we could see some sideways movement in the coming days. This type of consolidation is typical following a heavy sell-off, as bulls often push back with either a relief rally or a period of sideways action. While a break above $9.50 remains possible, the current price action suggests LINK will likely continue trading within this range in the short term.

Downtrend Remains Intact

Switching to the 1-day timeframe, we can see that the larger downtrend remains intact and LINK is only now finding some relief after losing the important $12.00 support just a few weeks back. The price has recovered modestly as the RSI emerged from oversold territory, but the bounce has been relatively weak. Price action remains sluggish around the $8.00 support level with $9.50 continuing to act as resistance above. As the daily RSI gradually returns to neutral levels, the most likely scenario in the short term appears to be continued sideways movement. It is crucial that bulls defend the $8.00 level, as a breakdown here could trigger another wave of selling. In that scenario, the next major support to watch would be around the $5.50 mark.

Breaking Below Key Weekly Support

The 1-week timeframe shows that LINK has broken below the $10.00 mark, which served as a key support level during the last two major bearish downtrends. This breakdown carries weight because continuing to close weekly candles below this zone would open the door to much deeper corrections. Bulls need to step in and reclaim the $10.00 level to reverse the current trajectory, but that looks difficult right now with the broader crypto market also struggling for momentum. If weekly closes continue printing below $10.00, we could see LINK test the $5.50 level in the coming weeks. This outlook is why our current LINK price prediction remains tilted to the bearish side.

Final Takeaway: What is Next for LINK?

Chainlink remains under pressure after breaking below the critical $10.00 level on the weekly chart. While the $8.00 support is holding for now and oversold conditions suggest some relief may be coming, the overall structure remains bearish. The most likely scenario in the short term is continued sideways movement between $8.00 and $9.50 as the market digests recent losses. Bulls need to reclaim the $10.00 level to shift momentum, but with the broader crypto market still weak, further downside toward $5.50 cannot be ruled out. For now, LINK traders should watch how price behaves at current support levels before making any directional bets.