The crypto market showed signs of a revival yesterday, with several assets experiencing significant price gains after weeks of lackluster action. Chainlink (LINK) stood out, gaining over 15% in just 24 hours, solidifying its position as one of the stronger altcoins in the current environment. This sharp recovery reflects growing interest in LINK as market sentiment shifts.
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Renowned analyst Jelle shared a technical analysis on X that revealed an important development in Chainlink's price action. According to Jelle, LINK has successfully turned a key resistance level into support – a bullish signal that often precedes a significant upside move. This structural change could pave the way for Chainlink to target higher price levels as it prepares to test critical supply areas.
Renewable energy market And Chainlink's ability to hold key levels suggests that the coming days could be crucial. If the uptrend continues, LINK could soon challenge overhead resistance, setting the stage for a bigger breakout. Amidst this awakening market, Chainlink's recent surge underscores its potential as a standout performer in the altcoin space.
Chain investors are waking up
Since reaching $30 on December 13, Chainlink has faced significant selling pressure, triggering a pullback that will test the resilience of its bullish structure. However, recent price action indicates a change in momentum as bulls show signs of awakening. According to analysts who follow the market closely, this could be the start of a massive rally.
Jelle's top analyst recently Share technical analysis on Xhighlights an important development in LINK's short-term trend. According to Jelle, Chainlink appears to have turned a key resistance level into support – a structural change that is often seen as a precursor to an upward move. This bullish signal has reignited optimism among investors, with Jelle suggesting that if the current momentum continues, LINK could reach an all-time high in the near future.
The key now lies in LINK's ability to break critical supply areas in the coming days. A successful breakout of these levels could pave the way for an aggressive rally as buyers look to capitalize on renewed market strength. As the broader cryptocurrency market shows signs of recovery, Chainlink's ability to reverse its recent downtrend positions it as a potential leader in the altcoin space.
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Critical liquidity test
Chainlink (LINK) is currently trading at $22.55, indicating a strong bounce from the local demand level. Price is now testing a critical supply zone that could determine its next major move. Encouragingly, LINK is trading above the 200-hour 4-hour EMA at $22.27, a key technical indicator that often shows bullish momentum when held as support.
For the bulls, holding this level is necessary to confirm the continuation of LINK's short-term uptrend. If LINK maintains support above the 200 EMA and builds momentum, the next major hurdle is at the $24 mark. A retracement of this level in the coming days would likely trigger a massive breakout, opening the door for LINK to target higher resistance areas and potential all-time highs.
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However, a failure to hold the 200 EMA as support could expose LINK to further selling pressure and push prices back towards local demand. Traders and investors are closely monitoring these technical levels as the broader market recovery creates favorable conditions for altcoins to regain lost ground.
Featured image from Dall-E, chart from TradingView
