Chainlink (LINK) Rebounds From Key Support as Market Eyes Next Resistance

• LINK rebounded after testing key support, pushing into a crucial resistance area near $18.
• A confirmed breakout above $18 could shift market momentum, signaling continued bullish movement in the short term.
• LINK’s corrective structure suggests a potential drop toward $11 if resistance holds, affecting its near-term trajectory.

Chainlink has shown notable price action, dipping into a key support range before rebounding sharply. Recent technical analysis suggests two potential scenarios, with one pointing to a continued upward move and another indicating a deeper pullback.

LINK’s Immediate Degree Analysis

The latest price movement saw LINK touching a support zone near its dollar-cost averaging (DCA) level. Following this drop, a strong impulse pushed prices higher, bringing LINK into a resistance area.

The response to this resistance is critical, as maintaining support within a three-wave structure could lead to a breakout. A decisive move above the micro resistance near $18 would confirm further upside potential.

Tracking the market observations on the price movements with Fibonacci retracement levels, trendlines, and Elliott Wave patterns. Hov Waves notes that a strong upward trend reached a peak before retracing to key support zones. The price rebounded near the trendline before testing resistance.

Source: Hov Waves (X)

On the alternate count, LINK’s decline does not exhibit a clear impulsive pattern but can still be interpreted as part of a larger corrective wave. This scenario suggests that LINK remains in a broader corrective structure, where the primary target sits around $11. If the decline extends, prices could even reach the sub-$8 range.

Key Levels to Watch

The immediate support level must hold to sustain the bullish outlook. A strong reaction here increases the probability of a breakout past the micro resistance. Conversely, failure to maintain this level could push LINK toward the lower targets identified in the alternate scenario.
The price movement in the coming sessions will determine whether LINK resumes its upward trend or extends its corrective phase. A confirmed break above resistance would shift momentum in favor of buyers, while further weakness could indicate a deeper retracement.

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