Chainlink (LINK) has ranged from $13.50 to $17 in recent weeks. After a strong rally in July, LINK peaked at $20.28 before pulling back. That sudden decline has led to questions of whether or not the breakout was real or just a transient surge.
The daily chart shows LINK broke a long-term descending resistance in July. This signaled the end of a six-month downtrend. The breakout brought optimism, but the recent dip below $17 now clouds that outlook. Price action has entered a critical zone once again.
The breakdown below $17 makes it harder to sustain the bull case. Previously, this level acted as strong support. Not going back to it can validate the breakout as merely a detour. To sustain a bull continuation, LINK needs to retake $17 and establish it as strong support.
But momentum is still very weak. The RSI is at 50, an indicator of market neutrality. The MACD is also stagnant around zero. These neutral cues imply bulls and bears are locked in a tug-of-war now.
Analyst Sees $15.40 as Key Support
Crypto analyst ThorTrades highlighted $15.40 as a crucial price floor. He believes LINK remains in an uptrend if this level holds. According to his chart, LINK has reclaimed a long-term ascending trendline from which it had corrected earlier.
He further stated that LINK has broken above a macro declining resistance. That resistance has now acted as support. If LINK can stay within this structure, a push above $18 can initiate a continuation of the rally to further targets.
The coin can now reside in an accumulation area. An uptick above $18 with good volume would add to bullish optimism. Until such times, however, traders should keep a close eye on the $15.40 to $17 area to catch strong signals.
Long-term target eyes $30 region
ThorTrades considers that LINK might increase to double its value in a new few months. He pointed to the confluence between major support zones. They go from around $15.30 to the rising triangle base pattern.
Chainlink’s higher lows on the daily chart show strength. But it’s dependent on support remaining and bullish market sentiment to keep it going. All things going right, a breakout to the $30 area remains possible by year-end.
