Market Overview: Chainlink/Yen (LINKJPY) on 2025-12-31

Summary
• Price action showed a bearish bias after forming a long lower shadow at key support.
• Volume spiked during mid-session selloff but failed to confirm a new low.
• RSI entered oversold territory late, hinting at possible near-term buying interest.
• Bollinger Bands widened during the morning, signaling rising volatility.
• Key 5-min resistance appears at 1944, while support tests 1932.

Chainlink/Yen (LINKJPY) opened at 1947 on 12:00 ET−1, reached a high of 1951, and fell to a low of 1928 before closing at 1937 on 12:00 ET. Total 24-hour volume was 914.49, with turnover of 1,768,508.29 JPY.

Structure & Formations

Price formed a bearish engulfing pattern at 1944, suggesting a shift in sentiment. A long lower shadow at 1932 hinted at rejected support, reinforcing the 1932–1934 consolidation zone as critical. A small bullish engulfing pattern emerged after 03:45 ET, pointing to temporary buying pressure.

Moving Averages and Momentum

The 5-min 20-period moving average (EMA20) dipped below the 50-period (EMA50), indicating short-term bearish momentum. The daily 200-period (SMA200) sits above the close, suggesting continued medium-term bearish alignment. RSI reached 28 by 05:30 ET, entering oversold territory, while MACD turned negative during the mid-session selloff, aligning with the bearish trend.

Volatility and Volume

Bollinger Bands expanded after 17:00 ET, reflecting increased volatility during the initial decline. Price spent significant time near the lower band, especially after 07:45 ET, suggesting bearish dominance. Volume surged during the 19:15–20:00 ET session, but turnover failed to confirm a breakout below 1932, hinting at potential exhaustion in the short-term sellers.

Key Levels and Fibonacci

1944 appears as the immediate resistance, followed by 1946 and 1949. The 1932–1934 zone acts as a strong near-term support area. A Fibonacci retracement of the 1944–1928 move shows 61.8% at 1935, suggesting a possible bounce level.

Price appears to be consolidating within a defined range, with potential to test 1932 in the short term. If buyers emerge near 1935, a rebound toward 1944 could follow. Investors should monitor volume and RSI for signs of exhaustion or reversal.