- Chainlink’s price is consolidating near the $12.22 level, a critical support zone that could lead to a potential rebound toward $19.
- A decisive break above the 200-week EMA could trigger a bullish move in Chainlink, with targets set for $15 and $17 levels.
- Recent price action shows that Chainlink is testing a long-term trendline, signaling a possible continuation of the bullish trend if support holds.
Chainlink (LINK) shows signs of a potential rebound following a surge in buying pressure near the $12 level. A tweet by Ali_charts captures the current market action and provides key levels for traders to monitor.
Technical Overview
Ali’s tweet indicates that a spike in buying pressure around $12 could drive a recovery in Chainlink. The tweet outlines that the price is testing support near $12.22. This level aligns with the 0.5 Fibonacci retracement and a long-term trendline.
The Fibonacci retracement levels are calculated from a low near $5.17 to a high of almost $28.98. Key levels identified include approximately $19.30 at the 0.236 mark and $15.00 at the 0.382 level. Additional retracement points stand at about $9.99 and $7.48. These levels serve as markers for resistance and support in the short term. The technical analysis notes that past rallies respected these Fibonacci levels. A potential double top near $28 to $29 suggests recent bearish pressure that led to the current decline.
Analysts noticed that the price has found support slightly above the long-term trendline. This trendline created in mid-2023 confirms the asset’s upward trend. The intersection of the trendline and Fibonacci level close to $12.22 is an important area for market players. A successful bounce off this level might lead to additional upward momentum.
Weekly Analysis
Chainlink’s weekly chart shows that the current price of $12.67 sits just below the 200‑week exponential moving average of roughly $13.12. The weekly candlestick structure reveals a series of red bars with lower highs, signaling restrained market enthusiasm. These candlesticks display long lower wicks that point to intermittent buyer activity near the support zone.
Recent weekly price action has clustered around the $12 to $12.50 area, where support was last seen in late 2024. The weekly analysis indicates that a strong weekly close above the 200‑week EMA is needed to reinvigorate buying interest. The weekly chart also shows that oversold conditions persist, as seen with the Stochastic RSI readings near 4.76 (%K) and 4.46 (%D).
Market Outlook
The technical data suggest that holding support near $12.22 is crucial for a potential rebound. Traders look for a decisive move above the 200‑week EMA to target the $15 level next. A weekly close above $13.12 may trigger an upward move toward $17 and beyond. The current trading volume of over $246 million adds weight to these technical levels.
A breakdown below the trendline and key support areas may prompt a shift in market sentiment. Should the bears continue their push, the price could test lower levels near $10 and further drop toward the $9.99 Fibonacci level.
