Technical rebound hints at renewed accumulation as Chainlink recovers from weekly lows, eyeing potential move toward $18 resistance.
Chainlink (LINK) extended its rebound on Sunday, rising over 4% to $16.35, as bulls defended the critical $15.00 support zone after a brief consolidation phase. The move comes amid improved sentiment across the broader crypto market, with both Bitcoin and Ethereum holding firm above $106,000 and $3,600 respectively.
Trading volume in LINK increased modestly, signaling that buyers are stepping back in after a multi-week correction that pushed prices down from late October highs near $26. Analysts note that the $15–$15.50 area has historically served as a strong demand zone, providing the base for previous trend reversals.
Technical Outlook: Key Resistance at $18
The daily chart shows LINK recovering within a tight range between $15.50 and $17.00, with short-term momentum indicators turning positive. A break above $17.80–$18.00 could open the door for a test of the next major resistance at $20, aligning with a previous liquidity pocket visible on trading volume profiles.
BitXJournal Market analysts emphasized that “Chainlink remains technically constructive as long as price sustains above $15, with the next upside target around $18–$20.” However, they also caution that a failure to hold above $15 could trigger a pullback toward $13.50, where the next demand cluster lies.
The structure of higher lows and steady volume growth reflects accumulation behavior typical in early trend reversals, suggesting that medium-term sentiment remains favorable.
Market Sentiment and Broader Context
Chainlink’s recent bounce aligns with broader renewed interest in oracle-based and DeFi infrastructure tokens, as investors look beyond Bitcoin for potential high-return opportunities. “As BTC stabilizes above $100,000, capital rotation into altcoins like LINK is becoming more evident,” BitXJournal market strategist explained.
In the wider market, Bitcoin continues to trade near $106,000, while Ethereum consolidates around $3,600, both providing a supportive backdrop for secondary tokens.
If bullish momentum continues, Chainlink could reclaim its September range highs near $20, reaffirming the token’s long-term bullish structure. For now, the $15 support level remains pivotal—a line that defines whether this latest bounce evolves into a sustained recovery or another short-lived relief rally.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.