Key Insights:
- Chainlink loses year-long trendline support, raising concerns of a deeper correction ahead.
- Price must break and hold above $15.40 to confirm bullish continuation in current range.
- Sideways action expected below $15.40 as traders await a clear breakout or breakdown setup.
Chainlink (LINK) was trading near $13.96 after falling nearly 14% over the past week. Price action shows the token sitting just below a trendline that has held since July 2023. The level has acted as support several times before, prompting short-term rebounds in prior tests.
A chart shared by Ali Martinez shows LINK slipping below this ascending trendline. Though the break is still minor, it puts the structure at risk. A deeper drop from here could open the door toward $12.50, an area that previously acted as a base during earlier pullbacks.
$15.40 Still a Key Barrier for Bulls
Technical data shows a clear resistance near $15.40. That level has capped several upside moves in recent sessions. Traders are watching this zone closely. A confirmed breakout and hold above $15.40 could trigger upward momentum toward the $16.00 area.
The same chart outlines the opposite case. If LINK tests $15.40 and stalls again, sellers may step in. “A retest of the $15.40 resistance and then showing weakness will also trigger a short,” noted one market watcher. Until price breaks from the current range, sideways movement is expected.
Short-Term Movement Remains Cautious
Intraday charts reflect slow movement and choppy structure. LINK continues to bounce between $12.50 and $15.40. With no clear trend on lower timeframes, traders are waiting for better setups before entering new positions.
Below $13.50, price may see renewed selling. Above $15.40, traders may shift toward bullish setups. Until one side takes control, LINK remains in a holding pattern.
As noted by CRYPTOWZRD,
“We now need to wait for the market to form the next mature chart structure.”
Trendline Retest Holds Importance
The trendline from July 2023 has been a key level for LINK bulls. It has held through several market pullbacks over the past year. The recent dip below it raises questions about the trend’s strength.
If LINK can reclaim and close back above the trendline in the coming sessions, the current breakdown may prove short-lived. If not, further losses toward lower support zones remain possible.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/link-on-the-edge-will-15-40-trigger/