Chainlink (LINK) price is showing signs of recovery after a week of bearish trend consolidation. The price has successfully broken out of its short-term downtrend, capturing renewed trader attention.
Analyst Crypto Pulse noted that while this movement is positive, LINK must overcome a critical resistance level to confirm a significant trend shift.
Chainlink Chart Analysis
On the 4-hour chart, LINK price has moved above its declining trendline, suggesting a potential easing of selling pressure. The token is currently trading at $17.50, testing a key weekly level.
This zone has acted as a strong barrier for several days, and its successful breach is likely to determine LINK's short-term trajectory.
If the breakout momentum continues and bullish sentiment drives LINK price higher, it could target the $20 zone, which represents the next significant resistance area.
Conversely, a failure to sustain this upward movement could lead to a decline back to the $16.70 support area, a level that has seen substantial buying interest in recent sessions.
Market Context and LINK Key Levels
The support range between $16.70 and $16.80 remains a crucial area. This level has successfully held multiple times over the past few weeks, serving as a launchpad for short-term price recoveries.
As long as LINK price remains above this zone, the bulls are considered to be in control. However, a break below this level could see the price fall towards $15.40 or even $14.70, where older demand zones are still active.
The broader cryptocurrency market sentiment, while still generally bearish, has seen some improvement, with Bitcoin trading near significant price points. This stability could provide LINK with the necessary environment to capitalize on its current momentum.
Chainlink Price Short-Term Outlook
The current technical setup appears promising. LINK's breakout from its trendline and its hold above short-term support suggest that the downtrend may be losing its strength.
However, definitive confirmation will only be achieved if LINK price can close above $17.50 with significant trading volume.
Should this occur, traders may begin to target the $19–$20 range as the next short-term objective. Until then, the situation calls for patience, with LINK bulls defending their current position and bears closely monitoring for any signs of weakness.