Chainlink (LINK) has reached a decisive moment as the cryptocurrency retests crucial support levels amid the broader market correction. Technical analysis suggests a potential 35% upside if key price levels hold, according to leading crypto analysts.
As highlighted in recent market analysis showing widespread crypto corrections, LINK has retraced 9.1% in the past 24 hours to the key $14 support zone. This price action comes after a brief surge to $16 earlier this week, which represented a 15.7% recovery from recent lows.
Technical Analysis Points to Critical Support Zone
Crypto analyst Ali Martinez identifies an ascending parallel channel pattern that has defined LINK’s price action since July 2023. The cryptocurrency has consistently bounced between the channel’s boundaries, suggesting the current retest of the lower boundary could trigger another upward move.
Key Price Levels to Watch
According to Rekt Capital’s analysis, LINK is testing a multi-month symmetrical triangle pattern that could determine its next major move. The critical levels include:
- Current Support: $14.00
- Historical Demand Zone: $13.50 – $15.50
- Next Resistance: $19.00
- Previous High: $30.90 (Q4 2024)
Potential Scenarios and Price Targets
If LINK maintains its position above the current support level, technical indicators suggest a potential 35% rally could materialize. This would align with historical price action and the cryptocurrency’s previous responses to similar technical setups.
FAQ Section
Q: What is the key support level for Chainlink?
A: The critical support level is currently at $14.00, with a broader demand zone between $13.50 and $15.50.
Q: What is the potential upside target?
A: If support holds, analysts project a possible 35% rally, targeting the $19.00 resistance level.
Q: What technical patterns are currently in play?
A: LINK is trading within both an ascending parallel channel and a symmetrical triangle pattern, with the convergence of these patterns creating the current critical price point.
As of this writing, Chainlink trades at $14.09, representing a 6.9% monthly decline. Traders should closely monitor the monthly close, as it could determine the cryptocurrency’s trajectory for the coming weeks.