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.
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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.
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