Chainlink (LINK) Analysis

Chainlink (LINK) ended its latest session in a holding pattern, with indecisive candles and choppy intraday action indicating a lack of clear direction. Traders are now looking to Bitcoin’s next move for guidance; any significant shift in BTC dominance could quickly affect LINK’s price action. Until the market leader reveals its direction, LINK remains on standby near key support while waiting for a decisive cue.

Falling Wedge Holds The Key To Chainlink’s Next Big Move

In a recent post, CRYPTOWZRD provided an update on Chainlink’s daily technical outlook, noting the indecisiveness in both LINK and LINKBTC daily candles. This reflects market uncertainty as traders wait for clearer guidance. The absence of a strong trend suggests a pause before the next significant move.

CRYPTOWZRD highlighted that LINKBTC is forming a falling wedge pattern, generally viewed as a bullish formation, especially in overbought conditions. A breakout from this wedge is crucial for Chainlink to trigger an impulsive upward move, indicating a potential shift in momentum.

The analyst explained that this breakout is more likely to happen as Bitcoin dominance declines. With Bitcoin’s grip loosening, altcoins like LINK tend to gain strength. Therefore, monitoring Bitcoin dominance is key to anticipating LINK’s moves.

Regarding support levels, CRYPTOWZRD identified $12.50 as the next critical target. A strong reversal from this point could ignite a rally toward the $16 resistance level, serving as a crucial area for bullish momentum.

He concluded by focusing on lower-timeframe charts to identify quick opportunities. While developing the broader trend, CRYPTOWZRD aims to capitalize on shorter-term movements, paying close attention to price action and volatility.

Choppy Intraday Action Keeps Bulls Cautious

Wrapping up the analysis, the analyst noted LINK’s intraday chart remains sluggish and choppy, offering little in terms of clear directional bias. A potential retest of the $12.85 support level—or even a minor dip below it—could present a bullish reversal opportunity, paving the way for a push toward the $14.40 resistance target.

However, a warning was issued; if Chainlink stays below the $12.85 level, it could slip into prolonged sideways movement. This uncertain behavior will likely hinge on Bitcoin’s overall market direction, which continues to influence altcoin performance. With no clear trade setup currently visible, the best strategy is to remain patient for a cleaner structure before making decisive moves.

Chart from Tradingview.com