- Chainlink has shown renewed strength after breaking its short-term bearish trend and reclaiming support.
- A daily close above $17.5 may confirm bullish momentum and push LINK toward the next $20 resistance level.
- Traders are watching the current zone closely as a breakout could signal the start of a stronger price recovery.
Chainlink (LINK) is trading near a critical decision point after breaking above its short-term bearish trendline. The asset, currently priced around $17.05, remains just below the weekly key level at $17.50, according to CryptoPulse’s latest technical update.
The chart shows LINK attempting to recover momentum following a downward trend that dominated recent trading sessions. The token has moved above the descending resistance line, signaling a potential shift in short-term sentiment. However, it is yet to confirm a close above the $17.50 mark that would validate a stronger bullish setup.
Analysts from CryptoPulse noted that if LINK can sustain support and rebound above this threshold, the market could see a retest of the $20 zone in the short term. The setup aligns with previous recovery attempts that followed similar consolidation patterns on the four-hour timeframe.
For now, LINK’s movement around this range reflects an early stabilization phase after an extended correction. The trading volume of approximately 160,000 LINK on Coinbase underscores the cautious sentiment among traders waiting for confirmation of direction.
Technical Outlook and Key Price Levels
The chart depicts LINK trading in a narrow range between $16.74 and $17.45, forming a potential support base. The descending trendline, drawn from the mid-October highs near $19, was breached briefly, suggesting weakening selling pressure.
CryptoPulse’s analysis indicated that the market may see further consolidation before an upward continuation. The immediate support lies near $16.70, while lower zones between $15.40 and $14.76 mark secondary buffers if the bullish attempt fails.
A strong daily or four-hour close above $17.50 would shift short-term bias toward the upside, with $20.00 serving as the first resistance target. The pattern suggests that buyers are beginning to regain control, but a sustained breakout remains crucial to confirming this shift.
The projection outlined by CryptoPulse includes the possibility of a retest of the breakout level before continuation. This aligns with standard technical behavior, where assets often revisit broken resistance to validate new support before accelerating higher.
Could LINK’s current setup mark the early stage of a larger recovery toward its next psychological resistance zone?
Traders Monitor Market Reaction and Price Action
Market participants have closely followed LINK’s reaction to this setup, as the $17.50 level has historically acted as a pivot in price action. A successful defense of the $16.70 region could reinforce confidence among buyers seeking entry positions during early breakout phases.
According to the analysis, the short-term bias remains cautiously optimistic, contingent upon price stabilization above key support. Failure to hold this zone could invite renewed selling pressure, potentially driving LINK back toward the $15.00 area.
The visual projection from TradingView highlights a potential move toward $20.00, marked by a small upward arrow, representing a near-term target. The arrow illustrates the bullish path that could unfold if market momentum strengthens alongside improved buying volume.
CryptoPulse’s commentary underscored that LINK’s broader recovery will depend on its ability to confirm a weekly close above the $17.50–$18.00 range. Sustaining this move could open the path toward higher resistance levels, with $20.00 representing the next milestone for traders observing the trend.
Overall, LINK’s chart indicates a transition phase where a breakout or rejection could define its short-term market direction. The next few sessions may prove pivotal in determining whether the token continues toward $20.00 or revisits lower support levels before a new attempt.
