Chainlink price remains under pressure in bearish channel, is $6 next?

Chainlink has extended its weekly decline after a sell-the-news reaction to Project Pangea, a multi-billion-dollar options expiry, and persistent weakness across the crypto market pushed LINK back toward a key long-term support zone.

Chainlink ( $LINK ) fell from a June 22 high near $8 to an intraday low of around $7 on June 26 before stabilizing near $7.16 at press time.

LINK’s drop accelerated as traders locked in profits following the June 23 launch of Project Pangea, a global foreign-exchange infrastructure initiative developed alongside European and South Korean banking consortia representing more than $10 trillion in assets under management.

Although the initiative strengthened Chainlink’s long-term enterprise case, short-term sentiment deteriorated ahead of Friday’s estimated $11 billion crypto options expiry. The large derivatives event pushed many digital assets toward their max-pain levels, triggering liquidations across leveraged altcoin positions and adding fresh selling pressure to LINK.

Macro conditions also remained unfavorable. Bitcoin’s drop below the $60,000 level weighed on the broader altcoin market as investors continued reducing exposure to risk assets. Consecutive weeks of U.S. spot Bitcoin ETF outflows, expectations that the Federal Reserve could keep interest rates elevated for longer, and delays surrounding U.S. crypto legislation further reduced appetite for speculative assets. At the same time, institutional capital continued rotating into artificial intelligence-related equities instead of digital assets.

Derivatives positioning has offered little relief. Leveraged long liquidations accelerated as LINK lost successive support levels, while declining open interest and cautious positioning suggested traders have reduced directional exposure rather than attempting aggressive dip buying.

Weekly structure keeps long-term downside risk in focus

On the weekly chart, LINK remains in a prolonged downtrend after failing to reclaim resistance near $8. The latest decline has brought the token close to a multi-year support area around $5.50-$6.30, where buyers repeatedly entered the market during previous corrections.

Momentum indicators continue to favor sellers. The weekly RSI has dropped to around 34 and remains below its signal line without entering deeply oversold territory, leaving room for another leg lower. Meanwhile, the MACD remains below the zero line despite a modest narrowing of bearish momentum, showing that bulls have yet to regain control.

A decisive weekly close beneath the long-term support zone could expose the psychological $6 level, while a sustained recovery above $8 would be needed to weaken the current bearish structure.

Bearish channel and Supertrend cap any recovery attempts

The four-hour chart shows LINK trading inside a well-defined descending channel that has guided the price lower since June 22. Every rebound has stalled near the upper trendline, while the Supertrend indicator continues to print a sell signal with dynamic resistance around $7.70.

MACD on the four-hour timeframe remains below the zero line, although the histogram has flattened after the latest selloff, suggesting bearish momentum has slowed rather than reversed. Unless buyers reclaim the channel resistance and break above the Supertrend barrier, the path of least resistance remains lower.

Failure to defend the $7 region could send LINK toward the $6.30 support, with the major psychological $6 level becoming the next downside target. On the upside, reclaiming $7.70 could allow the token to challenge the $8 resistance zone, where sellers regained control earlier this week.

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