Chainlink LINK Faces Critical Test as Bear Flag Pattern Threatens Further Decline Below $10
Chainlink (LINK) has resumed its downward trend, currently trading around $8.60 with a 4.16% drop over the past 24 hours. The token is encountering strong resistance at the 20-day Simple Moving Average (SMA) of $8.72. A bear flag pattern visible on the 12-hour chart indicates a potential further decline toward the $8.20-$8.40 support zone.
The market cap holds at $6.15 billion with daily trading volume of $243 million. Analysts point to the gently rising consolidation channel—a classic bearish continuation signal. CryptoPulse emphasizes the make-or-break situation: a breakdown WOULD confirm the bear flag's downside target, while a decisive push above $10 would invalidate the pattern.
The broader technical outlook remains weak, with LINK trading below all major moving averages. Traders are watching for decisive momentum to determine whether this is accumulation before a reversal or a prelude to another leg down.
