In the latest Chainlink daily technical outlook, CryptoWzrd noted that the token is closing bearishly and retesting the daily support level at $16.00. He mentioned that he plans to closely monitor the intraday chart to look for potential quick scalp opportunities, especially if LINK breaks above $16.80, which he considers a positive zone.
Possible change in Chainlink’s current bearish behavior
Next, CryptoWzrd pointed out that both Chainlink and LINKBTC ended the day on bearish candlesticks, suggesting short-term weakness. This downside move comes after a period of consolidation, suggesting that traders may be taking profits from recent gains. The analyst emphasized that despite the decline, the overall market situation still has the potential for recovery.
He further explained that if Bitcoin dominance shows positive sentiment tomorrow, LINKBTC could rise. A return to Bitcoin’s strength often leads to renewed confidence in the broader altcoin market, and LINK could benefit from this correlation.
According to CryptoWzrd, LINK’s retest of the $16/day support level unfolded as expected. This zone currently represents an important decision point, and staying above this zone could trigger a rebound towards the next major resistance level above $20, provided market conditions remain stable.
However, he cautioned that volatility could increase and market volume could fade as the weekend approaches. As a result, CryptoWzrd noted that it is important to maintain a balanced stance, keep expectations reasonable and remain alert to signs of new bearish pressure.
Bullish breakout could ignite a rally towards $19.30
Concluding his analysis, CryptoWzrd pointed out that Chainlink’s intraday chart shows significant volatility throughout the day, with traders in suspense due to rapid price movements. Despite the volatile movement, the price is currently teasing intraday resistance at $16.80, a level that could play a pivotal role in determining the next near-term direction.
He explained that a bullish breakout above $16.80 is likely to trigger a new wave of buying pressure. Such a move could pave the way for a rally towards the $19.30 target, where previous price action had shown a strong reaction and potential for profit taking.
Meanwhile, CryptoWzrd warned that a rejection from $16.80 or an extended trade below this resistance could lead to further sideways movement over the weekend. With volume expected to decline, this range-bound move is likely to continue until a clear catalyst emerges that provides momentum in either direction.
He concluded by stressing the importance of patience and clarity in the current setup. The market is in a period of decision, and waiting for stronger deal formation could provide a safer opportunity to enter.
