This article presents an analysis of the current situation with Chainlink (LINK), examining key support levels, long-term trends, and the current state of indicators.
Support at $20
Chainlink (LINK) is trading at $22.74, down about 2.9%. Investors are closely monitoring the $20 support level, hoping for a bounce that could lead to a breakout towards prices above $33 if buying momentum picks up. According to CryptoPulse, "$LINK is easing down toward our $20 buy zone", which could serve as an entry point for traders.
Long-Term Chart and Ascending Triangle
On a broader timeframe, Chainlink shows a developing ascending triangle pattern, formed over several years. The rising trendline and repeated tests of resistance near $40 suggest long-term accumulation. If a breakout occurs, it could result in a strong move above the $40 level.
Indicators and Trading Volume
According to the 4-hour chart, LINK trades around $22.75, pulling back from recent highs near $27. A descending triangle pattern suggests the possibility of continuation. The MACD shows a bearish crossover but is still hovering near neutral levels, while the RSI sits at 44, indicating some bearish momentum in the market.
Despite the current uncertainty, the support levels at $20 and $21 remain strong. If these levels break, a further price decline is possible. In the long term, the ascending triangle on the chart indicates the potential for significant growth of Chainlink in the future.
