Chainlink has faced significant selling pressure recently, experiencing a 22% drop from its local supply zone to test significant demand around the $20 mark. Despite this decline, market sentiment around LINK remains optimistic as analysts and investors expect a strong recovery. Many see this pullback as a strategic opportunity to accumulate, with the potential for big gains later this year.
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Top analyst Carl Runfelt shared a solid technical analysis on X, highlighting that LINK is currently trading within a falling wedge pattern on the daily time frame. Falling gaps are often seen as bullish reversal patterns, and a breakout above descending resistance can signal the start of a significant uptrend. According to Runfelt, once LINK successfully breaks out of this formation, the stage will be set for a massive rally, potentially pushing LINK to new highs.
With Chanlink’s strong fundamentals And with growing adoption in the decentralized finance (DeFi) and blockchain ecosystem, current price action can serve as a springboard for significant gains. However, the immediate challenge lies in regaining lost ground and pushing above the wedge resistance. As the market awaits confirmation of a breakout, LINK’s trajectory in the coming days will be crucial in shaping its long-term trend.
Chainlink is poised for recovery after the recent decline
Chainlink has solidified its position as one of the most promising altcoins in this market cycle, standing out in the rapidly growing Real World Assets (RWA) sector. Its innovations and partnerships are driving widespread adoption, especially with a groundbreaking collaboration with XRP. The partnership aims to enhance the functionality and adoption of Ripple USD (RLUSD), a stablecoin designed for decentralized finance (DeFi), making it a key player in the ChannelLink ecosystem.
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Renowned investor and analyst Carl Runfelt recently shared a technical analysis on X, highlighting that ChannelLink is trading within a falling wedge pattern on the daily time frame. This bullish reversal pattern suggests significant upside potential once LINK breaks above the descending resistance. Runefelt has set an initial price target of $30.94 following the anticipated breakout, signaling the potential start of a major bull trend for LINK.
Beyond its technical setup, ChannelLink’s strong fundamentals, including its leadership in Oracle solutions and its expansive influence in DeFi, position it as a top contender for this bull cycle. If LINK follows the bullish thesis laid out by Runefelt, the $30.94 target could just mark the start of a much bigger rally as the altcoin continues to gain traction and push the boundaries of decentralized innovation.
Price Analysis: Critical support holding at $20
Chainlink (LINK) is trading at $20, a critical level that indicates a strong weekly demand zone. Analysts and investors are watching this price point closely, as it has the potential to determine the short-term trajectory of LINK’s price action.
Holding above this key support level is important to maintain bullish momentum. If LINK manages to sustain itself at $20, it sets the stage for a potential rebound towards the $25 mark. A break of this resistance could trigger a broader rally, potentially taking LINK to multi-year highs as market sentiment shifts in its favor.
However, the stakes are high. A break below the $20 demand zone could lead to a deeper correction, with prices possibly retracing to the $16 level. Such a move could shake investor confidence in the short term but also create new opportunities for consolidation as LINK establishes new support.
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As the market navigates a volatile phase, the coming days will be critical for LINK. Whether it holds at $20 or tests lower levels, its ability to regain and sustain momentum above key resistance levels will determine the strength of the next leg in its bullish cycle. Investors remain cautiously optimistic.
Featured images from Dall-E, charts from TradingView
