Will Chainlink (LINK) Hold Support at $17 or Drop Further?

• Chainlink (LINK) drops 0.54% in 24 hours, with trading volume down 23.14% to $925.23 million.
• Resistance at $20 and support at $17 could trigger a breakout, with targets of $22.7 and $26.
• Trading volume declines by 25.83%, while Open Interest increases by 1.85%, indicating neutral market sentiment.

Chainlink (LINK) is currently trading at $17.35, representing a 0.54% decline over the last 24 hours. The trading volume has also decreased by 23.14% and currently stands at $925.23 million. These are recent developments that show that there is a downturn in the market activity of LINK.

Source: CoinMarketCap

In the past week, the price of LINK declined by 5.75%. This drop contributes to the negative trend in the short-term performance. Cryptocurrency has been trading with some volatility in the market.

LINK Struggles with $20 Resistance and Eyes Potential Breakout

Crypto analyst The Birb Nest highlighted that Chainlink is currently experiencing resistance at the $20 price level. This is a crucial point of resistance to the price, and the token has been turned down several times. In order to retest $20, LINK has to stand at support $17. There is an opportunity for a potential breakout with a consistent daily close above $17.

Should digital currency fail to find support at $17, it could fall to $15.5. Breaking the resistance at the price of $20 might result in increased targets, including the prices of $22.7 and $26. Now the question is whether the token can stay over $17 and go towards $20.

Source: X

Also Read: Solana Faces Pivotal Support Test: Is a Price Reversal Imminent?

Additionally, another analyst, CryptoWZRD, revealed that LINK’s recent trading ended in a confused manner. He proposed that cryptocurrency would face favorable development through LINKBTC. Analysts believe that the level of support will be retested at $16.90 before a possible turnaround at $18.85. He, however, advised the breakout to wait until it surpassed the resistance at $18.85 to verify the uptrend.

Source: X

Trading Volume Declines, but Open Interest Sees Modest Growth

According to CoinGlass data, the trading volume of the token has declined by 25.83 and is currently at $1.76 billion. Although this decreased, the Open Interest has grown by 1.85 to reach $658.89 million. The OI-Weighted Funding Rate is -0.0003, which means the market is neutral.

Source: CoinGlass

The total liquidations stand at $2.49 million in the previous 24 hours. The long positions totaled $1.94 million, and the short positions totaled $549.20K. This is indicative of ambivalent feeling, both long and short are actively being liquidated.

Source: CoinGlass

Although it has just been decreasing, analysts are paying attention to major support and resistance levels. A breakout of these levels would indicate a possible recovery of the token. The capability of LINK to hold it at $17, however, will dictate its future action in the volatile crypto market.

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