Weakness Prevails Below Key Levels
2024-12-17
Category: None

Chainlink continues to show bearish momentum after losing key support levels.

 Key Observations:
 
dVAL and pdVAL Lost – LINK has dropped below the daily value area low (dVAL) and remains weak with no significant new volume coming in, indicating a lack of buying interest.

Swing Low Taken Out – LINK has taken out the swing low at $28, but the volume remains low, showing weak follow-through and limited buying activity.

pdVAL and pdPoC Resistance – The previous daily value area low (pdVAL) and the previous daily point of control (pdPoC) are both situated at $29, now acting as a strong resistance level. Bulls must reclaim this area to regain strength.

Lack of Bullish Defense – Bulls are failing to defend key levels, further signaling weakness.

Below Key Levels – LINK remains below the weekly open (wOpen) and the daily open (dOpen), confirming a bearish bias.

 Target Levels: 

Bearish Targets:
pwOpen (previous weekly open) coincides with the daily level at 26.09, making this a significant confluence area for potential support.

The 0.5 Fibonacci retracement at 25.61 strengthens this zone as a next key downside target.

Next Major Zone: The green support area below 26.09 remains a potential demand zone if selling pressure persists.

 Summary: 

With LINK taking out the swing low at $28 on low volume, remaining below dVAL, pdVAL, dOpen, and wOpen, the bearish momentum remains intact. The pdVAL and pdPoC at $29 now serve as strong resistance. The next major downside target lies at 26.09, where confluence with the pwOpen and daily level strengthens the support zone.