Market Overview: Chainlink/Tether Volatility and Breakdown

Summary
• Price tested 13.63-13.72 resistance before declining sharply below 13.50.
• RSI and MACD show bearish momentum with potential oversold levels below 12.75.
• Volume surged during the breakdown below 13.50, confirming a shift in trend.
• Bollinger Bands widened during the selloff, indicating increased volatility.
• Fibonacci levels suggest potential support at 13.35-13.25.

Chainlink/Tether (LINKUSDT) opened at 13.49 on 12:00 ET − 1, reaching a high of 13.74 and a low of 12.64 before closing at 12.75 at 12:00 ET. The 24-hour volume totaled 2.25 million contracts, with a turnover of approximately $30.5 million.

Structure and Trend Reversal

Price formed a clear bearish breakdown pattern below key support at 13.50, confirmed by a strong close below 13.35. A long lower wick in the 15:00 ET candle suggests a rejection at 12.84, while a series of lower highs and lower lows indicate a shift in market sentiment from bullish to bearish.

Momentum and Indicators

MACD crossed below the signal line, aligning with a bearish divergence. RSI dropped rapidly into oversold territory, hovering near 25, suggesting potential for a short-term rebound. However, the lack of immediate bullish confirmation raises concerns about a further test of the 12.68 level.

Volatility and Volume

Volatility spiked during the breakdown, with Bollinger Bands expanding sharply after 14:00 ET. Volume was heaviest during the selloff between 14:00 and 16:00 ET, confirming the bearish move. The final hour saw a surge in volume at 15:00–16:00 ET, as price collapsed from 13.26 to 12.84.

Fibonacci and Short-Term Outlook

The 61.8% Fibonacci retracement level from the 13.63 high sits near 13.10, which could act as a near-term floor. A rebound above 13.40 may attract buyers, but unless bullish volume confirms a reversal, the path of least resistance appears to be downward.

LINKUSDT may consolidate near 12.75–12.85 for the next 24 hours, though a break below 12.68 could accelerate the decline. Investors should remain cautious about short-term volatility and divergence in price and volume.