Will LINK Enter Bearish Trend?

Chainlink (LINK) now finds itself at a critical juncture, with its price up against a major resistance level that could determine its next major move. LINK has seen significant volatility in recent months, breaking a long period of consolidation. However, the path ahead remains unclear as bullish and bearish signals battle for dominance.

LINK spent over 14 months trading below the symbolic $10 level before finally breaking higher in late 2022. This surge saw LINK reclaim double-digit prices after much anticipation. Yet after piercing through the $17 region close to the year’s end, LINK soon retreated rapidly. It now tests a pivotal resistance for the fourth time, near $16.60.

Also read: Chainlink (LINK) Weekly Price Prediction

Will Chainlink enter a bearish trend?

LINK’s price has been bouncing within what experts call a “distribution phase,” forming lower highs and declining trading volumes. The recent bullish breakout reversed at the $17.60 level post-Christmas, sparking fears of a distribution consolidation.

Some analysts remain cautiously optimistic, pointing to a key support area around $10.25 that could halt any deep pullbacks.

However, bearish signals in LINK’s Ichimoku chart and its broader failure to sustain above its 50-day simple moving average indicate growing downside risks. A continuation of this breakdown could pave the way for a drop towards or even below $8.

Also read: How the Bitcoin ETF Launch Could Fuel Altcoin Rallies?

Cryptocurrency experts at Changelly have given their price prediction for Chainlink for the weekend. According to the analysts, LINK is forecast to reach a minimum of $15.84 and a maximum of $21.65 this weekend. The average price of LINK is expected to reach $16.

If LINK closes firmly above $17.68, analysts project a fresh bout of upside, unlocking new highs. However, failure to conquer resistance could confirm the start of a deeper bearish trend. LINK has proven sensitive to broader crypto market moves, meaning Bitcoin’s trajectory could also prove decisive.