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- $LINK rebounded after testing key support, pushing into a crucial resistance area near $18.
- A confirmed breakout above $18 could shift market momentum, signaling continued bullish movement in the short term.
- $LINK’s corrective structure suggests a potential drop toward $11 if resistance holds, affecting its near-term trajectory.
Chainlink has shown notable price action, dipping into a key support range before rebounding sharply. Recent technical analysis suggests two potential scenarios, with one pointing to a continued upward move and another indicating a deeper pullback.
$LINK’s Immediate Degree Analysis
The latest price movement saw $LINK touching a support zone near its dollar-cost averaging (DCA) level. Following this drop, a strong impulse pushed prices higher, bringing $LINK into a resistance area.
The response to this resistance is critical, as maintaining support within a three-wave structure could lead to a breakout. A decisive move above the micro resistance near $18 would confirm further upside potential.
Tracking the market observations on the price movements with Fibonacci retracement levels, trendlines, and Elliott Wave patterns. Hov Waves notes that a strong upward trend reached a peak before retracing to key support zones. The price rebounded near the trendline before testing resistance.
On the alternate count, $LINK’s decline does not exhibit a clear impulsive pattern but can still be interpreted as part of a larger corrective wave. This scenario suggests that $LINK remains in a broader corrective structure, where the primary target sits around $11. If the decline extends, prices could even reach the sub-$8 range.
Key Levels to Watch
The immediate support level must hold to sustain the bullish outlook. A strong reaction here increases the probability of a breakout past the micro resistance. Conversely, failure to maintain this level could push $LINK toward the lower targets identified in the alternate scenario.
The price movement in the coming sessions will determine whether $LINK resumes its upward trend or extends its corrective phase. A confirmed break above resistance would shift momentum in favor of buyers, while further weakness could indicate a deeper retracement.