The cryptocurrency market has entered a wait-and-see phase, with major coins like Ethereum (ETH) hovering near key support levels. This cooling off sentiment has also impacted Chainlink (LINK), a prominent altcoin. After a two-week bullish run, LINK has seen a sharp reversal, raising questions about its ability to reach $20 this weekend.
During the market’s recent upswing, LINK formed a bullish channel pattern, indicating a potential price increase. However, that momentum has evaporated, with LINK experiencing a breakdown and a bearish trend reversal. As of writing, LINK sits at $17.91, currently ranked 13th globally by market capitalization.
Technical Indicators Paint a Bearish Picture
Technical indicators on the 4-hour timeframe point towards a potential decline for LINK. The Simple Moving Average (SMA) displays a bearish curve, suggesting a downward trend. Additionally, the MACD indicator highlights a rise in selling pressure, with the red histogram climbing steadily. This aligns with the declining moving averages, further hinting at a potential price drop over the weekend.
Resistance and Support Levels to Watch
If the market sentiment improves, LINK could attempt to retest the $18.25 resistance level. A successful hold at this point could pave the way for a test of the upper resistance at $19.22. However, if the bears maintain control, LINK might fall towards the $17.20 support level. A break below this point could trigger a steeper decline towards the crucial $15.925 support in the coming weeks.
Also Read:Asset Managers Poised for Takeoff in Tokenized Securities Market, Says Chainlink
Weekend Price Target of $20 Appears Out of Reach
With the current bearish technical indicators and overall market consolidation, a LINK price surge to $20 this weekend seems unlikely. However, if market forces shift and bulls regain control, a potential retest of resistance levels becomes a possibility. Investors should closely monitor price movements and key support and resistance zones to make informed decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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