In recent weeks, the cryptocurrency market has faced significant selling pressure. Ethereum and Chainlink have experienced notable declines. Let's explore the technical aspects that might lead to a shift in sentiment.
LINK Retesting Key Breakout
According to chart analyst Bit Amberly, LINK successfully broke out of a three-year-long symmetrical triangle on the weekly chart on November 22, 2024, when it surged above the upper resistance trendline at $15. However, recent market volatility has led to a retest of this breakout level, with LINK currently priced at $13.49, suggesting a common scenario where a new trend is confirmed before continued growth.
Could a Bounce Ignite a Recovery?
The current retest phase is crucial. If LINK can hold its breakout level and establish support, it could pave the way for another bullish move. Analysts highlight key resistance levels at $19.40, $31.10, and $49.00. These levels represent significant price milestones. A successful bounce from the current level could result in a +260% move from its current price. It's important to note that the 100-week moving average (MA) acts as a critical support level.
Final Thoughts
While the broader market remains uncertain, LINK’s technical setup suggests a potentially lucrative recovery. If historical price action within symmetrical triangle formations repeats, a major move upward could be on the horizon.
Careful observation of technical support and resistance levels could help indicate future trends. However, any further action should be considered with caution.
