Chainlink Price Analysis Shows Potential Rally After Retracement

Chainlink (LINK) has faced a notable 10% decline over the past 24 hours, with the price currently hovering around $23.40. Analysts, including Ali, suggest that LINK might experience a brief dip before rallying toward $100.

His analysis shows a multi-year symmetrical triangle pattern, with breakout targets at $31, $52, and $98, following a possible pullback to the $21–$22 support.

Despite short-term volatility, the long-term outlook for Chainlink remains bullish, driven by a strong technical setup. However, with the asset currently struggling to break past long-term resistance, market participants are advised to watch key levels for signs of stability or further downward pressure in the coming hours.

Symmetrical Triangle Formation and Price Testing Resistance

Analyst Ali has shared insights on Chainlink (LINK) with a price analysis suggesting that the cryptocurrency may experience a brief dip before moving toward a stronger rally. According to Ali’s chart, LINK is currently testing the upper resistance trendline of a multi-year symmetrical triangle. This pattern indicates that the price is approaching a decisive move, but the analyst expects a brief retracement before a breakout.

LINKUSD Chart | Source:x

Symmetrical triangles are known to indicate that the price will likely make a larger move after consolidating between the support and resistance lines. The market is watching to see if LINK can push through this upper trendline to confirm the expected breakout. If the price moves below support, there may be another opportunity for a dip before a surge occurs.

Fibonacci Extensions and Price Targets

The Fibonacci extension levels on Ali’s chart show potential upside targets for LINK once it breaks through the current resistance. After a possible pullback to the $21–$22 support zone, the price could rally higher, reaching price targets at $31, $52, and ultimately around $98. These levels suggest a strong rally potential for LINK, aligning with Ali’s forecast that the cryptocurrency could approach $100 in its next major cycle.

The Fibonacci retracement tool is commonly used to predict price retracements and extensions in technical analysis. The extension levels that Ali points to are considered key markers for where LINK could find resistance if the bullish trend continues.

Market Watcher’s Chart Analysis and Resistance Struggles

The analysis from Market Watcher provides additional context to the technical setup of LINK’s price movement. According to the chart shared by Market Watcher, Chainlink has encountered a sharp pullback after attempting to break through a multi-year downtrend resistance. This suggests that LINK is struggling to surpass the key resistance level, which could lead to further consolidation before any significant upward momentum can be established.

LINKUSDT Chart | Source:x

The pullback indicates that LINK may require more time to consolidate before making another attempt to break through the long-term resistance. Moreover, the analyst suggests that if the price holds above support levels, LINK could attempt to challenge the resistance again. However, further pullbacks are a possibility, and investors should remain cautious and monitor key price levels in the short term.

Current Market Sentiment and Declining Trading Volume

Chainlink price has experienced a decline of 10.42% in the last 24 hours, with the price currently at $23.40. The chart displays a steady downtrend, with the price fluctuating between $23 and $25. This decline suggests weaker market sentiment or potential profit-taking following an earlier rally, as the price failed to hold above the $25 mark.

LINKUSD 24-Hr Chart | Source: BraveNewCoin

The trading volume also shows a reduction in activity, with $2 billion in trading volume, reflecting a cooling of investor interest. Lower liquidity can contribute to the volatility of price movements, and the market could be in a consolidation phase.

Additionally, the available supply of approximately $678 million LINK suggests that large sell-offs could have played a role in the recent price decline. Therefore, monitoring price movements over the next few hours will be critical in determining whether LINK stabilizes or continues to face downward pressure.