Chainlink (LINK) Tests Support and Weekly Close Could Trigger $16 Upside

Chainlink (LINK) is facing a test this week as investors await a possible trend reversal. Analysts have pointed out that the token’s behavior at its major support and resistance levels in the coming two weeks will determine whether it rises or falls.

At press time, LINK is trading at $10.71, with a 24-hour trading volume of $1.12 billion and a market capitalization of $7.60 billion, reflecting a 4.04% decline amid broader market weakness.

Source: CoinMarketCap

Chainlink Weekly Close Determines Trend

Popular crypto analyst CryptoPulse emphasized that the weekly close this week will be important for LINK’s short-term trend, especially since the token is currently in a head-and-shoulders formation, which often indicates a transition from bullish to bearish momentum.

Source: X

The neckline for this particular pattern lies between $10.08 and $12.23. However, if the price of LINK manages to stay above this level of support in the coming weeks, a price bounce might be possible; otherwise, a fall towards $8 could occur if the price falls below the neckline.

Chainlink Eyes Key Daily Breakout

Meanwhile, another analyst, CRYPTOWZRD, shared insights from a day-to-day perspective. The LINK daily candle closed as a bearish candle for the day, representing Bitcoin’s current weakness. LINKBTC is still indecisive. However, according to CRYPTOWZRD, a strong performance from LINKBTC could give LINK positive momentum.

Source: X

A daily breakout above resistance at $12.00 could speed up the rise, taking LINK up to $16.00. Analysts also point out that in traditional markets, a weekly closing is expected to experience short-term volatility.

Also Read | Hyperliquid (HYPE) Defends Key Support as Market Watches the $34–$36 Zone

Chainlink Intraday Weakness Signals Risk

Intraday movements reveal that LINK was able to push up to the resistance at $11.80 but was unable to sustain its advance from that point. This failure to sustain its advance could potentially see the asset dip below the $11.00 mark in the near future.

Analysts have emphasized the importance of waiting for a better trade setup, underscoring the value of discipline in trading.

Overall, LINK is in a critical phase. The way in which LINK responds to its current levels of support and resistance in the coming weeks will determine whether the asset continues its upward trajectory or not. LINK’s current levels of support and resistance are around the $10-$12 zone.

Also Read | XRP Faces Downside Risk as Price Struggles Below $1.80