Chainlink Is Forming A Head-And-Shoulders Pattern – Confirmation Could Take LINK To $14
Chainlink (LINK) has recently shown resilience after retracing 35% from yearly highs, surging over 30% to test liquidity near the $23 mark. Despite the recovery, bearish sentiment continues to weigh heavily on altcoins, and Chainlink is no exception. The cryptocurrency has struggled to regain its local highs, raising questions about whether the recent rally has enough momentum to sustain further gains.
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Top analyst Ali Martinez provides a detailed technical analysis of X, highlighting key patterns that could determine LINK’s next move. Martinez said Chainlink is forming a head-and-shoulders pattern, a structure typically associated with bearish reversals. If this pattern is confirmed, LINK could face a significant decline, possibly as low as $14 in the coming weeks.
This technical setup puts Chainlink at a critical juncture, and staying above current levels is crucial to avoid a deeper correction. Investors and traders are keeping a close eye on price action, with $23 serving as a key resistance level. Is it possible to LINK Overcome pessimism Or succumbing to further downside may depend on broader market conditions and their ability to invalidate bearish patterns. For now, Chainlink’s future remains uncertain, making market participants nervous.
Chainlink price action shows weakness
Chainlink (LINK) has faced a challenging price environment since falling off its yearly highs, reflecting broader bearish sentiment in the altcoin market. Despite some recovery, LINK’s price action remains capped, with significant resistance forming near the $26 mark. Retaking this level will be crucial to eliminate the bearish outlook and reignite the bullish momentum.
Top analyst Ari Martinez recently Shared technical analysis of Xhighlighting the potential formation of a head and shoulders pattern. If this bearish setup is confirmed, LINK could plummet to $14. A move would represent a significant downside from current levels and highlight the challenges LINK faces in recovering its previous highs.
However, not all hope is lost. Martinez noted that holding above the $22 mark could provide Chainlink with a solid footing to stabilize and potentially reverse the bearish trend. A decisive move above $27 would further enhance the bullish momentum and suggest a possible return to a more optimistic outlook.
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At present, the market is still full of indecision. Broader market conditions, including Bitcoin’s performance, may affect LINK’s direction. If LINK can successfully navigate these key levels, it could overcome the bearish narrative and set the stage for a more sustained rally. Until then, traders and investors still need to remain cautious.
LINK test liquidity
Chainlink (LINK) is currently trading at $23 after successfully testing demand at the $22 level. Despite holding this key support, price action lacks a clear direction, leaving traders and investors in a state of uncertainty. The bears appear to remain in control for now, with the recent retracement from yearly highs weighing heavily on sentiment. However, the $22 mark has proven to be a resilient support, suggesting demand could surge at any time to resume the uptrend.
To get out of this indecision phase, LINK must overcome the key resistance at $26. A break above this level would invalidate the current bearish outlook and could trigger a massive rally that could potentially re-touch and surpass the previous highs. The move will restore confidence among traders and may attract new buyers to drive further momentum.
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On the downside, failure to hold above $22 will expose LINK to greater selling pressure, which could test lower support and extend the bearish trend. Currently, the market remains at a tipping point, with both bulls and bears waiting for the next decisive move. The next few days will be crucial for LINK as it seeks to find direction amid broader market uncertainty.
Featured image from Dall-E, chart from TradingView
