Market Overview: Chainlink/Yen (LINKJPY) Faces Bearish Pressure Amid Volatility

Summary
• Price action shows a bearish breakdown from key resistance at 2200–2215.
• RSI and MACD signal weakening momentum amid declining volumes.
• Volatility expanded during a sharp selloff from 2215 to 2160 before consolidating.
• Volume and turnover remain skewed to the downside, confirming bearish bias.
• A potential bullish rebound is forming near 2160–2170, showing early reversal signs.

Chainlink/Yen (LINKJPY) opened at 2205 on 2026-01-15, reached a high of 2215, and fell to a low of 2158 before closing at 2176 on 2026-01-16 at 12:00 ET. The 24-hour trading session saw a volume of 8,082.94 and a notional turnover of 17,574,505.58 JPY.

Structure & Formations

Price broke down decisively from the 2200–2215 resistance cluster, with a bearish engulfing pattern visible around 2212–2201. Later, a doji formed near 2160–2165, suggesting short-term indecision. The 2160–2170 range appears as a potential near-term support zone, with buying interest evident in the latter half of the session.

Moving Averages

On the 5-minute chart, the 20-period MA (2189.5) and 50-period MA (2191.2) are both bearishly aligned, confirming the downward bias. Daily MAs (50/100/200) are not fully available for this time frame, but the trend appears to have deteriorated from earlier positive momentum.

MACD & RSI

The MACD line turned negative, confirming bearish momentum, with the signal line pulling away as a bearish divergence. RSI is in neutral territory at 52, having dropped from overbought levels (70–74) earlier in the day. This suggests the selloff may be exhausting, but a sustained rally requires a close above 2190 to generate bullish conviction.

Bollinger Bands

Volatility increased after the breakdown, causing price to fall below the 2175–2185 lower band. Bollinger contractions were observed around 2180–2190, followed by a sharp expansion. The current price of 2176 is slightly above the lower band, indicating a possible oversold bounce or a continuation of the downtrend.

Volume & Turnover

Volume spiked during the 2215–2160 sell-off, with a 539.69-unit candle showing the largest single-volume impact. Turnover spiked in tandem, confirming the bearish momentum. Later, volumes dropped significantly during consolidation, suggesting a pause in active selling. A divergence between price and volume may signal a potential reversal if confirmed by a close above 2190.

Fibonacci Retracements

The 61.8% retracement level of the 2215–2158 move is at 2170, where the price has found initial support. A break below this level could target the 2165–2160 area. On the upside, the 38.2% level (2185) remains a key resistance to monitor for a potential bounce.

The market appears to be testing key support levels with a strong bearish bias intact. While a short-term rebound is possible near 2160–2170, the broader trend remains vulnerable to further downside. Investors should watch for a sustained close above 2190 for bullish confirmation. As always, volatility and volume patterns could shift rapidly, so caution is advised.