Following recent breakdowns of key support levels, Link bounced back a bit but finds it difficult to push above the $16 level. It initiated another leg down this week, aiming a lower price levels in the upcoming week.

In late December, Link initiated a drop after failing to increase above the $17.67 level. After days of drops, which saw the market to its lowest price level during last week’s crackdown, it saw a rejection and quickly recovered.

That crackdown brought the bears back into the market and the price entered a correction phase on the daily chart. However, the short-term bullish trajectory is still looking intact.

On Thursday, the bears reacted strongly to the $15.7 level and intercepted during recovery. It marked that level as resistance and initiated another leg down. Chainlink is now changing hands at around $14.

A further drop from there could put the asset in a more bearish condition. Right now, the sellers are gaining control on the hourly chart.

While it has lost steam on the daily timeframe, more selling pressure should be expected in the coming days. As shown on the daily chart, the volume indicator is decreasing by the day. If Link holds the $12.2 level firmly in the next drawdown, we can expect it to bounce back strong.

Link’s Key Levels To Watch

Source: Tradingview

Now that the price is facing down, the potential support levels to watch for a dip lie at $13.3 and $12.1. Below these levels lie $10.6. It may even dip to $9.6 (the orange zone) as a retest of the October 2023 breakout.

Link has seen multiple rejections in the past weeks. If it retakes the weekly high of $15.7, the next resistance levels to watch for an increase would be $16.6 and $17.67 with a potential breakup. 

Key Resistance Levels: $15.7, $16.6, $17.67

Key Support Levels: $13.3, $12.1, $10.6

Spot Price: $14
Trend: Bearish
Volatility: Moderate

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: fellowneko/123RF // Image Effects by Colorcinch

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Filed under: Bitcoin - @ January 14, 2024 7:04 pm