Chainlink is entering a critical phase as price action tightens and volatility continues to fade.
The latest charts highlight a market where sellers remain structurally in control, while buyers struggle to reclaim momentum despite short-term rebounds. With price compressing near long-term support, the next directional move is becoming increasingly important.
Descending Structure Keeps Sellers in Control
A new technical analysis shared by crypto trader Gain Muse shows Chainlink respecting a well-defined descending channel that has guided price action for months. Repeated recovery attempts inside this structure have failed, reinforcing the dominance of the downward trend.
The chart illustrates how earlier consolidation zones and breakout attempts have consistently rolled over into lower highs. Each rebound has been met with selling pressure along the descending resistance line, signaling that demand remains reactive rather than aggressive. As long as this resistance holds, upside attempts appear corrective rather than trend-changing.
Notably, price is now compressing within a tightening range near the lower boundary of the channel. This type of compression often precedes expansion, but in the current context, the prevailing trend suggests downside continuation remains the higher-probability outcome unless structure is reclaimed.
Short-Term Price Action Reflects Weak Follow-Through
The 4-hour LINK/USD chart reinforces this broader picture. While price has managed brief spikes higher, those moves have quickly retraced, leaving behind shallow bounces and limited follow-through. Volume activity remains uneven, with no sustained increase that would signal strong accumulation.
Recent volatility spikes were met with immediate selling, pushing LINK back toward its consolidation zone rather than establishing higher support. This behavior aligns with the broader descending structure shown in the higher-timeframe analysis, where rallies continue to function as relief moves within a bearish framework.
As price hovers just above key support, the lack of momentum is notable. Buyers have defended the level so far, but the inability to build sustained upward pressure keeps risk skewed to the downside. A decisive break below this base would likely accelerate the next leg lower, while any upside attempt must first reclaim the descending resistance to shift the bias.
Market at an Inflection Point
Chainlink’s current setup reflects a market approaching resolution. Compression, fading volatility, and repeated rejection from resistance suggest that indecision is giving way to an eventual expansion. Until structure changes, sellers retain the advantage, and bounces remain vulnerable.
Whether LINK stabilizes or breaks lower will depend on how price reacts around this narrowing range. For now, the charts show a market still searching for conviction, with downside risk remaining firmly on the table.
The post Chainlink Faces Renewed Selling Pressure as Price Compresses Near Key Support appeared first on ETHNews.
