Market Overview: Chainlink/Tether (LINKUSDT) on 2025-12-21

Summary
• Price declined from $12.61 to $12.30 over 24 hours with key support at $12.26.
• MACD and RSI signaled bearish momentum, with RSI hitting oversold territory near $12.26.
• Volatility increased notably after 14:00 ET, with large-volume bearish moves.
• A bullish engulfing pattern emerged post $12.26 low, hinting at potential reversal.
• Turnover spiked during the selloff and early recovery, showing strong conviction.

Chainlink/Tether (LINKUSDT) opened at $12.61 (12:00 ET − 1), hit a high of $12.71, a low of $12.22, and closed at $12.38 (12:00 ET). Total volume reached 492,538.02, with a notional turnover of $6,034,476.35 over 24 hours.

Structure & Formations

The price formed a bearish channel between $12.61 and $12.22 after a sharp selloff began around 13:15 ET. Key support levels were seen at $12.26, with a possible bullish engulfing pattern emerging from $12.26 to $12.38 as buyers re-entered. Resistance appears to be forming near $12.61–$12.65.

Moving Averages

On the 5-minute chart, the 20-period MA was bearish throughout the session, while the 50-period MA dipped below price in the afternoon. Daily MAs are still higher than current price levels, indicating a potential divergence if the short-term trend continues.

MACD & RSI

MACD turned negative early, confirming bearish momentum. RSI dipped below 30 at $12.26, suggesting oversold conditions. However, a quick bounce followed, which may signal a temporary reversal.

Bollinger Bands

Volatility expanded significantly after 14:00 ET, with price testing the lower band at $12.22 and bouncing higher. Price currently sits within the upper half of the bands, suggesting a potential pullback may be due.

Volume & Turnover

Volume surged during the selloff, especially from 13:15 to 14:00 ET, confirming the bearish move. A spike in turnover occurred between $12.30 and $12.38, indicating renewed buying interest.

Fibonacci Retracements

On the 5-minute chart, key retracement levels were tested at 38.2% ($12.48) and 61.8% ($12.36), both acting as support. On the daily chart, the 61.8% retracement of the previous bullish move is near $12.38–$12.40, a potential near-term resistance.

The forward-looking observation suggests a potential bounce from the $12.26–$12.38 range, but bearish momentum may persist if $12.22 is tested again. Investors should monitor volume behavior and RSI divergence in the next 24 hours for confirmation.

A closer analysis of the 5-minute chart shows that the 20-period MA has remained consistently bearish, while the 50-period MA crossed below the price line in the afternoon, signaling a shift in sentiment. This divergence between short-term and longer-term averages could indicate an impending consolidation phase.

The RSI has shown a strong bearish signal by dipping into the oversold territory at $12.26, with a subsequent quick rebound. This pattern might suggest a temporary reversal, but traders should remain cautious as the market has shown signs of increased volatility, especially following the 14:00 ET mark.

Bollinger Bands have stretched wide, reflecting a notable increase in volatility. The price touched the lower band at $12.22 and bounced higher, indicating a potential short-term floor. However, as the price now resides in the upper half of the bands, a pullback to test the lower band could be on the horizon. Investors should watch closely for signs of a breakdown or a continuation of the current trend.

With the Fibonacci Retracements showing multiple levels acting as support and resistance, the 61.8% level at $12.36 is particularly crucial. A break below this could signal a deeper pullback, while a retest and hold above it may confirm a bullish continuation. The market's reaction to these levels will be a key factor in determining the next move.