Chainlink (LINK) Price Prediction: Analyst Warns of a Possible Reversal Ahead – Here's Why

LINK dropped about 11% in the last day, now sitting at $20.40. But trading has picked up significantly; volume is up 235% as more people buy and sell.

Cryptocurrency prices have been volatile in recent months, with some coins experiencing significant gains and others facing losses. Chainlink (LINK), the native token of the decentralized oracle network, has seen its price fluctuate within a range. However, a recent analysis by a prominent crypto analyst suggests that LINK may be facing a possible price reversal.

LINK Dropped About 11% Last Day, Now Sits at $20.40

After showing resilience amidst bearish market conditions, LINK price seems to have encountered a roadblock in its upward trajectory. The cryptocurrency dropped about 11% in the last day, now sitting at $20.40 at the time of writing.

But trading has picked up significantly; volume is up 235% as more people buy and sell. This increased activity suggests that traders are keeping a close eye on LINK’s price moves.

Chainlink Prices Show Mixed Signals, Prominent Analyst Warns

The crypto community is keeping a close eye on LINK’s price moves as the charts show mixed signals about where it might go next. Prominent analyst Crypto_Jobs shared on Twitter that LINK is in a bullish correction phase. Moreover, the analysis warns about a possible price drop if certain levels don’t hold.

Support And Resistance Levels Define LINK’s Next Price Move

The price action shows two support levels that have been tested multiple times in recent price action, highlighting their importance. A drop below $17.00 could result in bearish momentum, with the next key level being $16.93.

Furthermore, LINK’s price needs to break through resistance at $19.48 and $20.50 to keep moving up. The $20.50 mark is especially important since it lines up with a key price level that traders watch.

Chainlink Technical Analysis

LINK’s price is following an ascending trendline that originated near $17.00. This trendline has provided consistent support and is a key factor in sustaining the bullish correction phase. There’s a trend line that could help push the price toward those resistance points at $19.48 and $20.50. But if the price drops below this line, we might see LINK test lower support levels.

Moreover, Crypto_Jobs highlighted both opportunities and risks in his analysis. He noted that while the bullish correction phase suggests potential upside, a close below $17.00 on the 4H chart could lead to further declines. The analyst also pointed out that LINK’s price may test resistance levels before any reversal occurs.