Chainlink (LINK) faces renewed selling pressure after breaking below its short-term trendline, slipping toward key support at $20–$20.5.
Analysts, including CryptoPulse and cryptoWZRD_, highlight this zone as crucial for a potential rebound. Despite short-term weakness, the asset’s broader structure remains intact, with bulls eyeing a recovery above $22 to regain momentum toward $25–$30.
LINK Corrects After Breaking Trendline Support
Chainlink traded lower after breaking below its lower-time-frame ascending trendline, indicating cooling momentum following a strong rally. The token’s recent breakdown suggested weakening short-term sentiment as traders assessed potential support zones. Analysts observed that the $20–$20.5 area remains the immediate focus for buyers attempting to defend the uptrend’s structure.
Source:x
CryptoPulse described the current setup as a temporary retracement within a still-healthy broader framework. The analyst identified $20–$20.5 as the first key “buy-the-dip” zone, with $17–$18 acting as deeper support if the market correction extends. The broader outlook depends on whether the token can maintain strength above these levels to resume its upward path.
Market Pressure and Bearish Daily Close
Chainlink closed the day lower as selling pressure intensified amid Bitcoin’s pullback and weakness in the LINKBTC pair. The asset’s decline reflected wider market volatility, with traders adjusting positions around major resistance levels. The altcoin opened near $23 before experiencing steady declines, slipping below $22 during the session and failing to sustain recovery attempts.
Source:x
The session’s price action showed lower highs and lower lows, confirming short-term bearish momentum. Analyst @cryptoWZRD_ attributed the move to panic selling tied to Bitcoin’s broader correction, which influenced altcoin performance. The market displayed signs of uncertainty, with increased volume suggesting active but cautious participation among traders.
Key Levels to Watch
As of the latest update, Chainlink traded around $21.81, marking a 6.79% daily decline. Despite the fall, technical indicators show that the mid-term structure remains intact. Maintaining price stability above $20 remains crucial for preserving the uptrend and preventing a shift toward the deeper $17–$18 zone.
Source: BraveNewCoin
Analysts are monitoring the $22.00 level as an immediate resistance point. A decisive breakout above this mark could validate renewed bullish momentum, potentially opening the path toward $25.00–$30.00. Sustained weakness below $21.50, however, may expose it to further retracement as the market seeks equilibrium.
Outlook Amid Ongoing Volatility
Trading volume reached $1.24 billion, indicating heightened activity despite the downside bias. LINK’s market capitalization stood near $14.8 billion, keeping it within the top 15 cryptocurrencies by valuation. The asset’s recent performance reflects a period of consolidation after a prolonged rally that began mid-year.
Market observers note that while short-term indicators show caution, maintaining higher lows on the broader time frame supports the argument for potential recovery once market conditions stabilize. Bulls are expected to defend the $20 zone as a critical level for renewed accumulation. If confirmed, the setup may provide a foundation for LINK’s next upward phase toward previously tested resistance levels.