LINK Breakdown or Bounce? Key Level Signals 10% Move

Key Insights:

• LINK trades below key trendline; downside targets at $9.96 and $7.73 if weakness continues.
• Bullish setup valid above $12.25, targeting $13.62 if price holds short-term support.
• MACD turns bearish as momentum fades, aligning with recent trendline breakdown and price rejection.

Chainlink (LINK) was trading at $12.26, down over 5% in the past 24 hours. Over the last seven days, the price has declined by more than 14%. The current level puts LINK below its 9-day simple moving average of $13.48, reflecting continued selling pressure.

On the daily chart, the trend shows a steady decline. Lower highs and lower lows have formed since early November. The MACD indicator supports this trend. The MACD line is below the signal line, and the histogram has shifted into negative territory. This points to a loss of momentum after a short recovery earlier in the month.

Bullish Setup from Timmi Arno

Timmi Arno shared a short-term chart showing a possible bullish pattern. The setup appears to follow a two-leg correction, with a midpoint and a potential turning point near the $12.25 level. The chart includes a key trendline and moving averages, where price was holding.

According to Timmi Arno, 

The upside target is $13.62, which is about 10% above the price. The key to this outlook is that support must hold. If price breaks lower, the pattern fails, and a move downward could follow.

This strategy is structured around price behavior at a critical level, with a defined exit plan depending on which direction the price moves.

Trendline Break on the Daily Chart

A separate view comes from analyst Ali Charts, who pointed out a breakdown on the larger timeframe. LINK recently fell below an ascending trendline that had been in place since early 2023. That trendline had seen multiple bounces, but it failed to hold this time. The breakdown level was around $12.63.

Ali posted, “Chainlink $LINK lost a key support trendline! Next stop: $8.” The chart points to two areas that may act as support: $9.96 and $7.73. The loss of the trendline suggests price could continue lower unless there is a fast recovery above it.

What Comes Next

LINK was tested at an important level. If price stays above $12.25, a move toward $13.60 remains possible. If it breaks lower, the next likely areas of interest are closer to $10 and possibly $8.

The next few trading sessions could set the tone. Both short-term bounce and extended decline remain possible depending on how the market reacts around current support.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.