- LINK trades below trendline, eyes $7.50 support
- Falling wedge signals continued bearish pressure
- $13.25 breakout could trigger 35% upside rally
Recent price drops beneath $12.00 demonstrate weak performance in the Chainlink (LINK) market. While short-term activity remains volatile, current technical indicators suggest the asset may be preparing to retest its previous breakout zone. If downward momentum continues, analysts believe LINK could be on track to revisit the $7.50 level.
LINK Trades Below Key Trendline as Bearish Momentum Builds
LINK is currently priced near $11.95, having declined over 6% in the past 24 hours. Trading volume also dropped by 40% during the same period, indicating less participation from buyers. This trend follows a 15.90% weekly decline, contrasting with the overall market strength observed since late 2023.
Technical analysis shows LINK moving within a falling wedge pattern. The token recently faced resistance at the upper boundary of this pattern and is now trending toward the lower end. A well-known market expert noted that LINK is retesting a long-standing ascending trendline from June 2023. If LINK fails to reclaim this trendline, the probability of further downside could increase.
Support levels are now in focus. Should LINK remain below $13.25 and break the $9.50 level, analysts expect the price to approach $7.50. This scenario remains valid if the current trend continues and no bullish reversal emerges.
Market Forecasts Mixed Amid Long-Term Bullish Setup
Despite the current downtrend, LINK’s long-term outlook still shows a positive bias. A weekly chart review suggests consistent bullish patterns since Q4 2023, driven by institutional interest and technical accumulation zones.
The token has recorded large breakouts from similar periods of sideways action.If LINK breaks out of the wedge and closes above $13.25, a rally of up to 35% may follow. However, for now, the asset remains at risk of further decline. Analysts continue to monitor the $9.50 and $7.50 zones as key levels in the days ahead.
