Market Overview for ChainLink (LINKUSD): August 29, 2025

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• Price action shows a bearish bias with a 5.06% drop in ChainLink (LINKUSD) over 24 hours.
• Volatility spiked during early ET sessions with sharp intraday swings.
• RSI is trending lower, suggesting potential oversold territory.
• Bollinger Band contraction observed during consolidation phases.

Opening Summary and Key Metrics

At 12:00 ET on August 29, 2025, ChainLink (LINKUSD) opened at $24.90, reached a high of $25.26, fell to a low of $23.26, and closed at $23.53 by 12:00 ET. The 24-hour volume was 2,012.71, while the total turnover amounted to approximately $49,800. The session saw sharp declines from a midday peak, suggesting bearish momentum and a possible shift in investor sentiment.

Structure & Formations

LINKUSD formed a significant bearish reversal pattern during the early hours of the session, particularly at 22:30–23:45 ET, with a bullish candle followed by a bearish engulfing pattern. A key support level appears to be forming around $23.26–$23.42, as price bounced from this area multiple times. A critical resistance line is visible near $25.26, where buying pressure failed to sustain a breakout.

Moving Averages and Volatility

On the 15-minute chart, the 20-period and 50-period moving averages have diverged, with the 20 MA crossing below the 50 MA, forming a bearish “death cross.” For daily sentiment, the 50-period and 200-period MAs are in a downtrend, indicating that the broader trend remains bearish. Bollinger Bands have tightened during consolidation phases (notably 19:00–20:00 ET), signaling a potential breakout or breakdown scenario. Price currently resides near the lower band, reinforcing oversold conditions.

MACD, RSI, and Momentum

The MACD line has crossed below the signal line, confirming bearish momentum. The histogram shows shrinking bullish momentum and expanding bearish strength, especially after 08:00 ET. The RSI has dipped below 30, entering oversold territory, suggesting a potential short-term bounce. However, sustained bearish pressure could delay a rebound. A divergence between price and RSI appears near 06:45 ET, hinting at possible exhaustion in the downward move.

Volume and Turnover Divergence

Volume surged during key bearish moves, particularly at 17:15–18:00 ET and 06:45–09:30 ET, confirming the strength of the downward trend. However, turnover dropped sharply after the 09:30 ET print despite continued selling pressure, suggesting reduced conviction in the bearish narrative. Price-volume divergence appears near 03:30–04:30 ET, where price continued lower without a corresponding volume spike.

Fibonacci Retracements

Applying Fibonacci to the 24-hour swing (from $25.26 to $23.26), the 38.2% retracement is at $24.50 and the 61.8% at $24.04. Price appears to have stalled near the 61.8% level, suggesting limited near-term upside potential. On the daily chart, the 61.8% retracement of the recent bearish leg may present a potential support/resistance zone for the next 48 hours.

Backtest Hypothesis

Given the current technical profile of LINKUSD and the recent overbought/oversold extremes, the described backtest using RSI(14) as an entry signal could offer a practical approach for traders seeking to capitalize on short-term reversals. If applied to a similar structure in the LINKUSD chart (i.e., RSI < 30 for oversold entry), a 3-day exit rule could help capture the rebound expected from the $23.26–$23.42 support range. However, volatility remains elevated, and incorporating stop-loss or take-profit levels would enhance risk management. The hypothesis aligns well with the observed intraday divergence and RSI exhaustion, making it a relevant strategy for a low-latency, momentum-driven approach to ChainLink trading.