Chainlink Price Pulls Back As $23 Support Holds but Downside Risks Persist

Chainlink has retested the price area at $23.00, and the lack of bullish response could support a further drop to $22.00-21.00.

Bulls need to hold the daily level of $20.50 to sustain momentum and preserve long-term structure.

Bitcoin’s fall below $110,000 has added pressure, influencing short-term weakness in LINK’s price movement.

Chainlink ($LINK) has retreated following the rallying period, and technical data suggests a retest of key support levels. This token is now trading at the price of $23.54, having lost 3.9% in the last 24 hours. The bulls have reportedly tested the $23.00 support zone, but with little success. The broader setup highlights potential for additional downside moves, with analysts monitoring price behavior as correction phases continue to develop.

Key Levels Signal Potential Short-Term Correction

Notably, the $23.00 level acted as the first major support, aligning closely with a daily support zone at $22.94. Despite the bounce attempt, buying activity has lacked strength. This has opened the possibility of a further move toward lower support levels near $22.00 and $21.00. On the daily range, price has traded between $22.94 and $24.70, with resistance at the higher boundary.

In addition to intraday volatility, the daily chart shows momentum remains intact as long as bulls remain above $20.50. This level has emerged as a key level to maintaining the overall bullish trend. A close above would still remain supportive of longer-term goals, but a breakdown will erode short-term momentum. The weekly chart also suggests that a correction is on tap with current trading conditions.

Chainlink Under Pressure as Key Support Level Becomes Decisive

However, the current retracement cannot be considered in vacuum. Bitcoin has also dipped below the $110,000 mark, which adds to market pressure. This decline has influenced sentiment around Chainlink, limiting the strength of recovery attempts. As a result, traders remain attentive to how the token reacts around critical supports, particularly the $20.50 line.

Chainlink remains under watch with support and resistance levels shaping the next sessions. With current weakness in the broader market, the response of bulls at these levels will determine whether downside pressure continues or stabilizes. Chainlink faces ongoing pressure after retesting support, with $20.50 remaining critical. Market reaction at this level will determine whether downside momentum persists or stabilizes within the current trading structure.