In his last In Chainlink’s daily technical outlook, CryptoWzrd noted that the token closed bearishly and retested the $16.00 daily support level. He mentioned plans to keep a close eye on the intraday chart for potential quick scalp opportunities, especially if LINK holds above $16.80, which he considers a positive zone.
A possible shift in Chainlink’s current bearish action
Continuing, CryptoWzrd pointed out that both Chainlink and LINKBTC closed the day with bearish candles, signaling short-term weakness. The downward move came after a period of consolidation, indicating traders may be taking profits after recent gains. Despite the pullback, the analyst emphasized that the overall market context still offers potential for recovery.
He further explained that LINKBTC could experience upward momentum if Bitcoin dominance shows positive sentiment tomorrow. A recovery in Bitcoin’s strength often translates into renewed confidence in the broader altcoin market, and LINK could benefit from this correlation.
According to CryptoWzrd, LINK’s retest of the $16 daily support level went exactly as expected. This zone now represents a crucial decision point; Holding above could trigger a recovery towards the next major resistance at $20 and above, if market conditions remain stable.
However, he warned that with the weekend approaching, volatility could increase and market volume could thin out. As a result, CryptoWzrd maintained a balanced stance, noting that it is essential to keep expectations rational and remain alert to signs of renewed bearish pressure.
A bullish breakout could trigger a rally towards $19.30
Concluding its analysis, CryptoWzrd noted that Chainlink’s intraday chart showed notable volatility throughout the day, with rapid price swings keeping traders on edge. Despite the choppy moves, the price is now teasing the intraday resistance at $16.80, a level that could play a crucial role in determining the next short-term direction.
He explained that a bullish breakout above $16.80 would likely trigger a wave of renewed buying pressure. Such a move could pave the way for a rally towards the $19.30 target, an area where previous price action has shown a strong reaction and potential for profit-taking.
On the other hand, CryptoWzrd warned that a rejection from $16.80 or prolonged trading below this resistance could lead to more sideways moves over the weekend. With lower trading volumes expected, this bandwidth-hungry behavior may continue until a clear catalyst emerges that will drive momentum in both directions.
He concluded by emphasizing the importance of patience and clarity in the current setup. The market is at a decision point and waiting for a stronger trade formation could provide a safer entry opportunity.