LINK Price Plunge: Rejection at Resistance – Is a Deeper Dive Inevitable?

Chainlink (LINK) faces a price drop after rejection at a key resistance. Will it recover, or is a further decline on the horizon?

LINK Price Plunge: Rejection at Resistance – Is a Deeper Dive Inevitable?

Chainlink (LINK) has hit a snag, facing rejection at a critical resistance level and experiencing a 3.8% price drop. Is this just a temporary setback, or a sign of a more significant downturn to come? Let's dive into the analysis.

Resistance Holds Firm

Recent analysis pointed to a key resistance zone around $13.82, defined by the 0.618 Fibonacci retracement level. LINK price attempted to breach this level but failed to close above it, indicating strong selling pressure. This area is now acting as a significant obstacle to further gains.

Support Levels to Watch

Immediate short-term support appears around $13.16. A further drop could see support in the $12.00–$12.50 range. The long-term low of $10.92 remains a critical level to watch, marking the base of the current trading range.

Mixed Signals and Market Sentiment

While some analysts initially spotted bullish reversal patterns from the $13.15 support zone, the recent rejection suggests caution. The ability to maintain higher lows and breach consolidation ranges previously hinted at growing bullish engagement, but the current price action paints a less optimistic picture. The price structure remains defined by lower highs and lower lows since mid-May.

What's Next for LINK?

A daily close above $13.82 is crucial to shift sentiment and potentially open the path toward higher retracement levels at $14.17 and $14.44. However, as long as $13.82 holds as resistance, buyers may struggle to build momentum, and a further price decline is possible.

The Bottom Line

LINK is at a pivotal point. The rejection at $13.82 highlights the challenges it faces in overcoming resistance. Whether LINK can rebound and break through this level or succumb to further downward pressure remains to be seen. Keep a close eye on those support and resistance levels!

So, buckle up, crypto enthusiasts! The LINK price rollercoaster continues. Will it be a thrilling climb or a stomach-churning drop? Only time will tell!