Chainlink’s Crucial Monthly Close: Will LINK Surge or Sink?

The cryptocurrency market’s recent downturn has impacted Chainlink (LINK), pushing it back to a critical support level. Analysts are closely watching this month’s close, believing a break above a key resistance could trigger a significant price rally.

Retesting Key Support

LINK experienced a sharp 9.1% retracement in the past 24 hours, bringing it back to the crucial $14 support zone. This follows a brief rally that saw the price climb 15.7% from last Friday’s lows to reach an 18-day high of $16 on Wednesday. However, the broader market correction, impacting Bitcoin (BTC) and Ethereum (ETH), quickly reversed these gains, leaving LINK trading around $14.

Technical Analysis Insights

Analyst interpretations vary. One perspective suggests LINK has been trading within an ascending parallel channel since July 2023, with its current price retesting the channel’s lower boundary. A successful bounce from this level could propel LINK towards the channel’s upper range.

Another analyst highlights a multi-month symmetrical triangle pattern. A break above this triangle’s upper boundary, following a period of consolidation, could signal a significant price move. While a previous breakout in Q4 2024 led to a two-year high, the price subsequently retreated, creating the current situation. The successful retest of the triangle’s upper boundary is considered vital to confirm the strength of this potential upswing.

Historical Context and Demand Zones

Historical price action reveals LINK’s tendency to find support within a specific price range, roughly between $13.5 and $15.5. Holding this support is crucial for future upside potential. A successful monthly close above the triangle’s upper boundary would not only confirm the post-breakout retest but could also position LINK to target the $19 resistance level.

The Crucial $14 Support

Maintaining the $14 level is paramount. Failure to hold this support could indicate further downside pressure. However, a successful defense of this crucial support zone, coupled with a strong monthly close above the key resistance, suggests a potential 35% upswing for LINK. The coming days will be decisive in determining LINK’s immediate future, as traders and investors eagerly await the monthly close.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice.