Chainlink, a popular cryptocurrency, has witnessed a prolonged consolidation period below the $10 mark. However, a notable surge occurred in November 2023, with the bulls successfully elevating the price by more than 130%. Since then, the trend has maintained a consolidated stance, with bears attempting to pull the price below crucial support levels.
Over the past few weeks, there has been a gradual resurgence in bearish momentum, indicating a potential shift in market dynamics. The bears demonstrated their influence by driving Bitcoin prices below the $40,000 threshold, raising concerns about the overall health of the cryptocurrency market. Concurrently, Chainlink also experienced a breakdown from a previously bullish channel, hinting at a possible trend reversal.
Chainlink at $13.78: Facing Bearish Trends
According to Michaël van de Poppe, the CEO & Founder at MN Trading, Chainlink is currently undergoing a crucial retest at $13.20. This level serves as a critical marker to assess the resilience of the cryptocurrency amidst market fluctuations.
Van de Poppe remarked, “Having swept the liquidity beneath the recent lows, if we revisit that territory, then I’m anticipating $10-11 as a plausible bottom. Currently, we are eyeing $13 as a potential support, testing before a potential upward trajectory.”
According to the latest data from CoinMarketcap, Chainlink is trading at $13.78. Its 24-hour trading volume stands at $619.13 million, and its market capitalization is $7.83 billion. In the past day, LINK dropped by 1.63%, and it saw an 8% decrease over the past week.
To navigate through the challenges posed by the bears, three significant support levels need to be tested and cleared – $13.73, $12.55, and $10.72. The prospect of a tedious task for the bears arises due to the possibility of selling volume exhaustion at the initial line of defense. Despite the current momentum favoring the bears, analysts suggest that the bulls could reenter the market at any moment.
Furthermore, Van de Poppe emphasized in a recent X post that Chainlink against Bitcoin is exhibiting signs of a potential breakout later in the year. The establishment of higher lows is noted, and a breakout above 4500 satoshis could propel the cryptocurrency to 9000 satoshis.
However, amidst the ongoing market volatility, Chainlink investors are closely monitoring key levels and anticipating potential moves that could shape the cryptocurrency’s trajectory in the coming weeks. Van de Poppe, expressing confidence in the future, stated, “I’m buying the dips.”
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