Chainlink price faces pressure amid bearish signals

Chainlink (CRYPTO:LINK) is currently grappling with a bearish trend as its price remains under pressure.  

Following a significant crash in late July, the cryptocurrency has been largely confined to sideways movement, struggling to regain momentum.  

Despite some broader market trends turning bullish, Chainlink has yet to find the strength to capitalize on these shifts.  

One of the key indicators contributing to the bearish outlook is Chainlink’s Network Value to Transactions (NVT) ratio, which has reached its highest level in over four years and eight months.  

The elevated NVT ratio suggests that the network's value is overextended relative to its transaction volume.  

This scenario often signals an impending price correction, adding to the concerns for LINK holders.  

In addition to the NVT ratio, Chainlink’s Relative Strength Index (RSI) is also flashing bearish signals.  

The RSI, a crucial momentum indicator, is currently in the negative zone, indicating that the altcoin is experiencing downward pressure.  

While the RSI shows some signs of a potential bullish reversal, the lack of significant buying pressure suggests that LINK may struggle to break out of its current range.  

As of now, Chainlink is trading at $10.42, which is considerably lower than its previous highs.  

The altcoin is at a ten-month low, and without strong external catalysts, it appears that LINK may remain stuck in a consolidation phase under the $11.00 mark.  

The chances of a significant price recovery are slim unless the $11.00 resistance level can be flipped into support, which could pave the way for an uptrend toward $11.99 and beyond.  

For Chainlink to invalidate the current bearish outlook, it would need to break through these critical resistance levels and sustain a rally.  

Until then, the likelihood of continued consolidation and range-bound trading remains high.  

At the moment, the Chainlink price is $10.27.