At the current moment, Chainlink’s [LINK] price has tested the Bull Market Support Band at $18, a crucial level that will determine the strength of its long-term trend.
Traditionally, maintaining support above this threshold has indicated robust bullish momentum, paving the way for further price increases.
If LINK manages to stay above this band, it could validate its upward trajectory, attracting more investors and potentially reaching levels exceeding $25 in the upcoming weeks.
However, a breach below this level, especially followed by a confirmed retest as a resistance, could trigger selling activities, undermining Chainlink’s bullish framework and suggesting a higher downside risk.
In the event of such a scenario, LINK might retest lower support levels around or below $14, regions that have previously served as areas for accumulating the asset.
It will be crucial to closely monitor the weekly closing around this range to ascertain the next market direction for this altcoin.
LINK Faces a Decisive Test at Critical Level
An examination of LINK’s price behavior using the LuxAlgo structural analysis pointed to a shift in momentum as Chainlink remains above $18, affirming a positive bias in the market.
The support at $18 was rigorously tested by a long tail on LINK’s daily chart and promptly rejected, indicating a growing interest from buyers, with significant resistance levels at $22 and $25 in sight. Nonetheless, failing to uphold $18 as support could lead to a trend reversal towards $16.80.
The MACD indicator exhibited a rise in bullish momentum as the MACD line crossed above the signal line near the $18 mark, reinforcing the upward movement.
Although trading volume remained relatively subdued, implying the need for more robust buying pressure for the breakout to be sustained.
An uptick in volume could strengthen Chainlink’s bullish momentum, propelling it towards higher price objectives.
Conversely, a decline in the MACD histogram might signal a momentum slowdown, heightening the probability of a retracement towards $17 and possibly $15.
As long as buyers maintain dominance above the BMSB, LINK could extend its upward trajectory; however, a failure to retain support could indicate heightened bearish influence and deeper corrections.
Assessing Global Holders’ Profitability
Notably, LINK’s trading at $18 revealed that 76.79% of wallets were ‘in the money,’ demonstrating substantial backing at this price level.
In contrast, 15.73% of addresses were ‘out of the money’ at this threshold, suggesting potential resistance if Chainlink struggles to sustain its position above it.
The ‘at the money’ percentage, standing around 7.47%, highlighted a transitional phase near $20.00—a critical pivot determining future price action.
Consistent support above the BMSB could signal a strengthening bullish sentiment, potentially setting higher price targets, while a drop below might result in further declines for the altcoin.