Chainlink (LINK) Indicators Suggest Mixed Signals After a 11% Weekly Gain

Chainlink (LINK) has been showing mixed technical signals recently, with some indicators turning bearish while others suggest a potential upside ahead. With its price up 11% in the last seven days, Chainlink was on its path to surpass Pi Network in market cap, but this could be delayed for now.

With LINK almost not moving in the last 24 hours, its market cap is currently $10.3 billion, and Pi Network is around $12.7 billion. The upcoming days will be crucial as several technical indicators reach critical inflection points that could determine whether LINK continues its rally or faces a correction.

Chainlink DMI Shows Sellers Took Control

According to Chainlink’s DMI chart, its ADX (Average Directional Index) has decreased from 26 yesterday to 20.46 today. This decline indicates weakening trend strength regardless of direction.

ADX is a component of the Directional Movement Index (DMI) that quantifies trend strength on a scale of 0-100, without indicating direction. Generally, readings above 25 suggest a strong trend, 20-25 indicate a developing trend, and below 20 reflect a weak or absent trend.

Chainlink’s ADX moving from above 25 to just above 20 signals that the previous strong trend is losing momentum and shifting toward a more neutral or ranging market.

The Positive Directional Indicator (+DI) has fallen significantly from 33.3 to 20.1, while the Negative Directional Indicator (-DI) has increased from 14.2 to 21. This crossover, with -DI now exceeding +DI, suggests a potential shift from bullish to bearish momentum.

Combined with the weakening ADX, this technical picture points to a likely bearish reversal or continuation pattern forming for LINK’s price. Traders might anticipate further downside pressure in the near term, though they should monitor for stabilization or reversal signals as the trend weakens.

If ADX continues to decline below 20, LINK may enter a period of consolidation rather than strong directional movement.

LINK BBTrend Is Now Positive After Staying Negative For Several Days

LINK’s BBTrend has now turned positive, reaching 3.69 after remaining in negative territory since March 4. A significantly negative reading of -20 was recorded on February 28.

The BBTrend (Bollinger Bands Trend) indicator is a momentum oscillator that measures the relationship between price and Bollinger Bands to identify trend strength and direction. It calculates how price is moving relative to the Bollinger Bands, which themselves represent standard deviations from a moving average.

When BBTrend is positive, it suggests prices are moving above the middle band and potentially toward the upper band, indicating bullish momentum.

Conversely, negative readings suggest bearish pressure with prices moving below the middle band toward the lower band. The recent shift to a positive 3.69 BBTrend value for LINK could signal emerging bullish momentum after a period of downward pressure.

This reversal, coming after an extended negative period that bottomed at -20, might indicate a meaningful change in market sentiment.

However, traders should confirm this signal with other indicators, as the relatively modest positive reading of 3.69 suggests the bullish momentum is still developing rather than strongly established.

Will Chainlink Go Back To $20 In March?

LINK EMA (Exponential Moving Average) lines are currently trending downward, potentially forming a death cross in the near future.

If this bearish pattern materializes and Chainlink price breaks below the critical support level at $15.79, we could see further downside movement.

In this scenario, LINK might decline to test psychological and technical support levels at $14 and potentially even $13.45, representing significant drops from current prices.

Conversely, the recent positive shift in BBTrend suggests growing buying pressure may be building. If this bullish momentum continues to strengthen, LINK could challenge the immediate resistance at $17.64.

A decisive break above this level would open the path to test higher resistance zones at $19.79 and, subsequently, $22.31. In a strongly bullish scenario where upward momentum accelerates, Chainlink could potentially reach $26.4, which would mark its first time trading above $25 in over a month.

This technical setup presents a clear inflection point for LINK, with convincing breaks of either the support at $15.79 or resistance at $17.64, likely determining the next significant price movement.