Chainlink (LINK) has formed a double bottom pattern, signaling a potential breakout toward $21. The pattern, known for indicating trend reversals, has developed near a key support zone. LINK is consolidating after recent volatility, with rising buying activity suggesting the possibility of an upward move. The market remains at a crucial juncture, with technical indicators showing mixed signals.
Market observations indicate support for retesting
The figures obtained from Ali Chart reveal that the price position of LINK began declining before 28 February and recovered above $17.00. The token was resisted at $17.50 before moving around $14.30 to $16.70. LINK then found support at $17.18 as it consolidated later.
It has also been observed that double bottom pattern has formed in the daily chart thus providing evidence that the asset has defended some important levels. If the buying pressure persists, LINK may retrace back to the located near $21 area.
Technical indicators reflect mixed sentiment
In its daily chart analysis by TradingView the , LINK has continued to be observed as bearish even as it bounces back. The MACD (12, 26) is in the negative territory indicating a weak bullish crossover from the 0.2110 as the MACD line crosses the signal line at -0.9883.
However, the histogram again went back into the negative side to -1.1994, proving that there was not enough buying pressure. A bullish crossover with green histogram bars on the MACD would mean the existence of strong bullish momentum.
The Relative Strength Index (RSI 14) stands at 43.26, below the neutral 50 level. This suggests that LINK remains in a bearish phase. However, the RSI has risen from 36.98, signaling minor strength. If the RSI pushes above 50, it may indicate a shift toward bullish conditions.
Chainlink’s current market insights
CoinMarketCap data shows LINK trading at $15.66, down 3.74% in 24 hours. The market capitalization stands at $9.99 billion, reflecting a 3.80% decrease. Trading volume over the same period reached $984.78 million, marking a 14.39% drop.
The price movement for LINK demonstrates resistance at $15.65. Above $15.65 LINK needs to maintain enough support to stop a downward price shift that might drop to $14.00. LINK has the opportunity to recover into the $17.50-$18.00 region before striving for $21 support.
