Chainlink continues to hold above key support levels, keeping the broader market cautiously optimistic. Despite the recent indecisive candles, the setup suggests that a strong bullish move could quickly change sentiment and reignite momentum towards higher targets.
Chainlink faces mixed signals as monthly candle closes lower
In his daily Chainlink technical report. perspectiveCrypto analyst CryptoWzrd started by reviewing the higher time frames and noted that LINK’s monthly candle closed slightly lower. Furthermore, the LINK/BTC pair closed its monthly candle indecisively, reflecting a lack of clear momentum against Bitcoin. Meanwhile, both daily candlesticks closed indecisively, setting an ambiguous tone for the short term.
CryptoWzrd emphasizes that the LINK/BTC pair must rise to inject significant momentum. For this to happen, LINK/BTC must hold above the $0.000170 BTC resistance level, which would generate the initial bullish sentiment needed for Chainlink to begin its climb towards the first major target.
If the necessary bullish sentiment is secured, the altcoin is expected to be pushed towards the daily resistance target of $20. The analyst highlights that achieving a healthy bullish breakout above $20 is the critical event that will trigger the next major bullish rally and confirm a stronger directional trend.
On the other hand, CryptoWzrd identifies the $16 level as the main daily support for the current structure. This price must hold to avoid a deeper correction that would jeopardize the current bullish objectives.
The analyst has stated that his focus for the immediate future will shift to lower time frame chart formations tomorrow. This microanalysis will be crucial in identifying the best scalping opportunities as the market continues to consolidate near these critical structural levels.
Choppy intraday action keeps traders on edge
CryptoWzrd went further to reveal that LINK’s intraday chart has been choppy and slow, reflecting a bearish trend in the market. Despite the lack of strong momentum, the price still remains above the $16.90 level, which remains a positive sign for the bulls in the near term. Furthermore, the analyst emphasized that further bullish movement is necessary to confirm a constructive chart formation and create a potential long opportunity.
Without that breakout, the structure remains fragile and traders could struggle to find reliable entry points for bullish setups. A drop below $16.90 could trigger a deeper decline, putting additional pressure on Chainlink. CryptoWzrd concluded that patience remains key to navigating the current indecisive phase as it is best to wait for the next clear signal or trade setup before making any major moves.
