Chainlink Could Drop to $20 Before Next Breakout
Chainlink faces rejection at mid-channel; $20 support may be tested before another breakout attempt.
- LINK rejected at mid-channel resistance
- $20 support could be retested soon
- Next breakout depends on holding key levels
LINK Faces Mid-Channel Rejection
Chainlink (LINK) recently failed to break above its mid-channel resistance, raising concerns about a short-term pullback. Technical analysts note that this rejection could trigger a retest of the $20 support level — a key price zone that has held strong in past corrections.
After weeks of sideways movement, bulls attempted to push LINK higher, but the resistance proved too strong. This rejection has shifted market sentiment from bullish to cautious, with many traders now eyeing lower support levels.
If the $20 level fails to hold, further downside could be on the table, but for now, LINK appears to be consolidating in preparation for a potential breakout attempt in the coming weeks.
$20 Is the Level to Watch
The $20 mark has historically acted as a strong support level for Chainlink. A drop to this level wouldn’t necessarily be bearish — it could present a buying opportunity if bulls defend the zone.
Traders will be watching volume, RSI levels, and broader market sentiment as LINK approaches this area. If support holds, it could act as a launchpad for a new breakout above the mid-channel — potentially sending LINK back toward $25 and beyond.
However, if bearish pressure increases, LINK may struggle to regain momentum in the short term.
Breakout Still Possible if Support Holds
Despite this setback, the broader outlook for Chainlink remains cautiously optimistic. The project continues to show strong fundamentals, with increased activity in its decentralized oracle services and growing DeFi integration.
If $20 holds as support, and the crypto market remains relatively stable, LINK could be gearing up for another attempt to break out of its channel in the near future.
Patience and risk management will be key for investors watching this level closely.
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