Chainlink’s (LINK) Bullish Pattern Holds—Key Levels Set Stage for Next Major LINK Price Move

Chainlink (LINK) has retraced from its recent highs, presenting what some traders see as a prime accumulation opportunity.

Chainlink (LINK) price has witnessed a recent decline, presenting an opportunity for traders to accumulate at lower levels. As highlighted by analyst Alex Clay, the market downturn has provided a strategic entry point for investors aiming to capitalize on LINK’s bullish structure.

In Clay’s analysis, a critical technical level that has been retested is the neckline of a Cup & Handle formation on Chainlink’s monthly chart. This pattern, often regarded as a bullish indicator, comprises a rounded accumulation base (the cup) followed by a pullback (the handle) before a potential breakout.

After Chainlink’s breakout attempt at this level, the current price action showcases a retest of this breakout zone, a move that traders view as a bullish confirmation.

If this level continues to hold, it could bolster the uptrend and lay the groundwork for further gains. Clay himself has expressed confidence in the setup, stating that he is adding to his LINK holdings at this stage.

Technical Levels Charting LINK’s Next Move

Resistance is encountered at $25.00, a level where prior rejections have occurred. If the bullish momentum persists, the next resistance range spans between $35.00 and $38.00, with a potential long-term target above $50.00.

On the downside, LINK’s support lies between $18.00 and $19.00, the zone currently undergoing a retest. At press time, LINK trades at $19.9. Should this level falter, the next significant support lies between $13.00 and $15.00. Market participants are keeping an eye on whether LINK can maintain its position above $18.00, as a break below $17.50 could indicate a deeper pullback.

Read also: Whale Activity Could Signal a Lido DAO (LDO) Price Surge – Here’s What to Watch

Market Sentiment and Future Price Outlook

Despite the overall market decline, LINK still showcases 24-hour trading volume at $1.17 billion, indicating strong liquidity. While short-term sentiment may be negative, macro indicators suggest that Chainlink is still in a long-term uptrend. The completion of its prolonged decline has shifted prior resistance levels into new support zones.

If LINK manages to stay above $18.00, we could see a recovery towards $25.00, with potential gains extending into the $30.00-$35.00 range. However, a drop below key support could lead to the price testing lower levels before finding bullish momentum again. The coming days will be crucial in determining whether this retest solidifies LINK’s uptrend or leads to further declines.

Follow us on (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.Get all our future calls by joining our FREE Telegram group.