Chainlink Tunrns Resistance Into Support – ATH Next?
The cryptocurrency market showed signs of recovery yesterday, with prices across multiple assets rising sharply after weeks of sluggish action. Chainlink (LINK) stands out, gaining over 15% in just 24 hours, cementing its position as one of the stronger altcoins in the current environment. This sharp recovery highlights the growing interest in LINK as market sentiment shifts.
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Renowned analyst Jelle has shared a technical analysis of X, revealing key developments in Chainlink price action. According to Jelle, LINK has successfully turned a key resistance level into a support level – a bullish signal that usually precedes a major upward momentum. This structural shift could pave the way for Chainlink to target higher price levels as it prepares to test key supply zones.
The market takes on new vitality Chainlink’s ability to hold key levels suggests the coming days could be crucial. If the bullish momentum continues, LINK could soon challenge overhead resistance, setting the stage for a bigger breakout. In this awakening market, Chainlink’s recent surge highlights its potential to outperform as an altcoin space.
Chainlink investors wake up
Since peaking at $30 on December 13, Chainlink has faced significant selling pressure, triggering a pullback that tested the resilience of its bullish structure. However, recent price action suggests a shift in momentum as bulls show signs of awakening. Analysts who follow the market closely say this could mark the start of a massive rebound.
Top Analyst Jelle Recently Shared technical analysis of Xhighlighting a key development in LINK’s short-term trend. Jelle said Chainlink appears to have turned a key resistance level into a support level — a structural shift that is often seen as a harbinger of a major move higher. This bullish signal has reignited investor optimism, with Jelle saying LINK could reach new all-time highs in the near future if current momentum continues.
The key now will be LINK’s ability to break out of key supply areas in the coming days. A successful move above these levels could pave the way for a sharp rebound as buyers look to take advantage of renewed market strength. As the broader cryptocurrency market shows signs of recovery, Chainlink’s ability to reverse recent downward trends makes it a potential leader in the altcoin space.
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Testing critical liquidity
Chainlink (LINK) is currently trading at $22.55, reflecting a strong rebound in local demand levels. Price is currently testing a key supply area that could determine its next significant move. Encouragingly, LINK is trading above the 4-hour 200 EMA at $22.27, a key technical indicator that often signals bullish momentum when sustained as support.
For bulls, holding this level will be crucial to confirm the continuation of LINK’s short-term uptrend. If LINK maintains support above the 200 EMA and builds momentum, the next significant hurdle lies at the $24 mark. A return to this level in the coming days could trigger a massive breakout, opening the door for LINK to target higher resistance areas and potential all-time highs.
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However, if it fails to hold support at the 200 EMA, LINK may face fresh selling pressure, pushing the price back to levels of local demand. Traders and investors are keeping a close eye on these technical levels as the broader market recovery creates favorable conditions for altcoins to regain lost ground.
Featured image from Dall-E, chart from TradingView
