Chainlink price has bounced on the daily, but weekly chart suggests it’s just a short-term relief rally within a broader bearish structure.
Summary
- Chainlink price has bounced from $13.70 low and is eyeing $17.50 descending channel resistance, but a weekly Head and Shoulders pattern keeps the broader trend bearish.
- The technical weakness in Chainlink price occurs amid a backdrop of major fundamental developments, most notably the recent partnership with Japan’s SBI Digital Markets.
Chainlink price technical outlook
Chainlink (LINK) price is up 7% over the past 24 hours, currently trading around $16.20. The daily chart shows a recent bounce from the descending channel support near $13.70. The price now appears to be tracking toward a retest of the descending trendline resistance, which marks the upper boundary of the channel and projects to around $17.50.
Momentum indicators on the daily chart support the potential retest of that resistance. The RSI (45) is recovering from oversold levels and rising, while the MACD histogram is printing green and signaling the early stages of a bullish crossover.
However, Chainlink price appears to be forming a massive Head and Shoulders pattern on the weekly chart, with the neckline support around $10. If broken, it would confirm the bearish pattern and open the door for further downside.
Viewed through the lens of this weekly formation, the recent bounce appears to be a short-term relief rally rather than the start of a potential reversal. Unless Chainlink price can break above the $17.50–$18.00 resistance with follow-through, price action is likely to remain corrective within the broader bearish structure.
Chainlink continues to expands its cross-chain footprint
The technical weakness in Chainlink price occurs amid a backdrop of major fundamental developments.
Most notably, Chainlink has recently secured a major partnership with Japan’s SBI Digital Markets to advance tokenized finance solutions in Asia. Specifically, SBI Digital Markets will use Chainlink’s CCIP as its exclusive cross-chain infrastructure.
Other noteworthy developments include a successful pilot by UBS, a Swiss multinational investment bank and one of the world’s largest financial institutions, which tested onchain subscription and redemption of a tokenized money market fund using Chainlink’s oracle infrastructure.
Additionally, Dinari has recently joined forces with Chainlink and S&P Dow Jones Indices to bring the S&P Digital Markets 50 Index onchain later this year.
