- LINK hovers at critical $12.228 support, balancing between a rebound toward $15.003 or a drop to $9.989 amid fading momentum and lower highs
- Fibonacci retracement levels shape LINK’s trend as price struggles at key resistance and support, with historical buying interest at $12.228
- The rising trendline from 2023 fuels bullish sentiment, but lower highs signal weakening momentum, making $12.228 a decisive point for traders.
According to expert Ali, Chainlink (LINK) has retraced from its 2023 peak and is currently circling a critical support zone. With a current price of $12.816, LINK is around the $12.228 0.5 Fibonacci retracement level. Additionally, this region coincides with an upward trendline that runs from June 2023 to April 2025.
This level could serve as the starting point for a rebound because of the high confluence formed by these two technical indicators. Failure to hold, however, would lead to a more severe decline in the direction of the 0.618 retracement, or $9.989. After several lower highs, there is still short-term pressure, but the overall trend is still optimistic.
Key Fibonacci Levels Shape Market Sentiment
The Fibonacci retracement spans from a swing low of $5.17 to a peak of $28.98. This structure offers critical insight into investor behavior. The 0.382 retracement at $15.003 acted as a resistance level that LINK recently failed to breach. Consequently, the price returned to the 0.5 zone as sellers took back control. Strong historical purchasing interest is also indicated by the price’s many bounces from this level in recent months.
Additionally, the rising trendline, which has held steady since the middle of 2023, has supported each rally. There is underlying bullish enthusiasm in this line. However, the price structure has shifted to lower highs, indicating fading momentum. Volume data is absent from the chart, so price action becomes the primary tool for momentum analysis.
Rebound or Breakdown Ahead?
Currently, LINK sits at a critical technical intersection. Holding above $12.228 could attract fresh buying interest and fuel a move toward $15.003. If momentum accelerates, the 0.236 level near $19.297 becomes the next major target. This area also coincides with the upper Fibonacci zone, strengthening its significance.
However, a breakdown below $12.228 and the trendline support could shift focus to $9.989. This level, representing the 0.618 retracement, holds historical significance as a strong support during corrections. Consequently, market participants are closely watching the $12 zone for directional confirmation.
