In its latest Chainlink daily technical outlook, CryptoWzrd noted that the token closed bearishly, retesting the $16.00 daily support level. He mentioned plans to closely monitor its intraday chart for potential rapid scalping opportunities, particularly if LINK holds above $16.80, which he views as a positive zone.
A possible change in Chainlink’s current bearish action
Moving forward, CryptoWzrd pointed out that both Chainlink and LINKBTC closed the day with bearish candles, signaling short-term weakness. The move lower came after a period of consolidation, suggesting that traders may be taking profits following recent gains. Despite the pullback, the analyst stressed that the overall market environment still holds recovery potential.
He further explained that LINKBTC could experience an upward boost if Bitcoin dominance shows positive sentiment tomorrow. A resurgence in Bitcoin 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 played out exactly as expected. This zone now represents a crucial decision point, holding above it could trigger a bounce towards the next major resistance of $20 and above if market conditions remain stable.
However, he warned that as the weekend approaches, volatility could increase and market volume could reduce. As a result, CryptoWzrd maintained a balanced stance, emphasizing that it is essential to maintain rational expectations and remain vigilant for any signs of renewed bearish pressure.
The bullish breakout could trigger a rally towards $19.30
Concluding its analysis, CryptoWzrd noted that Chainlink’s intraday chart showed considerable volatility throughout the day, with rapid price swings keeping traders on their toes. Despite the choppy movements, the price is now touching the intraday resistance of $16.80, a level that could play a vital 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 strong reaction and profit-taking potential.
On the other hand, CryptoWzrd warned that a rejection from $16.80 or prolonged trading below this resistance could lead to further sideways moves over the weekend. With lower expected trading volumes, this range-bound behavior could continue until a clear catalyst emerges to drive momentum in either direction.
He concluded by underlining the importance of patience and clarity in the current setup. The market is at a decisive point and waiting for a stronger trading lineup could provide a safer entry opportunity.