- LINK failed to hold above $28 after rallying from $17 in August.
- Support levels to watch are $21 and $17 if selling pressure grows.
- A breakout above $28 could target $30.5 and restore bullish momentum.
Chainlink price has reached a crossroad, as it was unable to keep it above the price level of $28 and currently stands close to the price of $23. The critical point is the $28 zone that may shift the trend bullish once again in case it is regained. However, any further weakness also would push LINK down to the low to mid-single-digits. The approaching sessions will decide on whether the buyers will take over again or the bears will push the correction further.
Chainlink at a Crossroads: Reclaim $28 or Risk a Drop Toward $16
Chainlink chart by analyst Ali Charts posted on X shows that there was a major shift in price structure following the stiff rise in August. chainlink was ranged on the $17 bottom up to highs of about $28, and has now reversed and has not been able to maintain above this very important area of resistance. Ali noted that the support of Chainlink should be back to the level of support of $28 to prevent a stoop to $16.
Chainlink is currently trading at prices of around 23 and the momentum looks to be weak as lower highs develop below the $25 and $26 zone. The dotted projection indicates that there may be a relief bounce to mid-24s and then it will continue to decrease to the $20-$21 support region.
Should selling pressure pick up and $21 break, the next resistance is at $17 which coincides with the previous zone of breakout. To lose that amount may mean the price is at risk of further reversing to a point of $16 or even less in case the bearish momentum continues.
To resume control, the first step that must be made by bulls is to move above the supply limit of the near future above $24.50, indicating to be absorbed. A robust close above $26 would enhance market structure further, and the only thing that could turn the longer term trend back to the bullish side would be a confirmed break and support above $28 opening upside potential to $30.5 and above.
In short, the LINK is experiencing a decisive conflict between the support defending buyers and sellers toward low grounds. As Ali notes, the important threshold is still $28. Downside risks prevail without its regaining, and areas to be considered primarily are $21 and $17.
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