In a recent analysis shared on X by CRYPTOWZRD, it was reported that Chainlink has concluded the trading session with a bearish sentiment, currently testing the crucial support level at $12.50. Anticipated lower liquidity over the weekend is expected to contribute to erratic price movements, highlighting the importance of closely watching intraday volatility. While a clearer market setup may take time to materialize, this support zone could provide early indications of the token's next direction.
As oversold conditions intensify, CRYPTOWZRD raised the question of whether LINKBTC is poised for a rebound. His detailed commentary pointed out that both LINKUSDT and LINKBTC closed with distinctly bearish daily candles, reflecting Bitcoin's overall pullback and demonstrating the altcoin market's ongoing sensitivity to BTC's fluctuations. He emphasized that a healthier formation of bullish candles is necessary before any lasting recovery can be anticipated.
In related news, CRYPTOWZRD highlighted that LINKBTC is currently in a significantly oversold state, indicating a statistically probable chance for a positive reversal. If a bounce occurs, he predicts it could trigger a sharp upward spike in LINK's price, swiftly shifting market sentiment from bearish to bullish. Analyzing the price structure, he noted that Chainlink is trading precisely at the pivotal $12.50 daily support level, asserting that a strong bullish reversal from this point is crucial for initiating an impulsive upward movement and reinstating upward momentum.
If buyers can regain control, CRYPTOWZRD has identified $16 as the next critical resistance level, followed by a more substantial barrier at $19.50. Surpassing these levels would indicate a genuine shift in market dynamics, suggesting a trend change rather than a temporary bounce. However, he cautioned that Bitcoin's price movements over the weekend will significantly impact Chainlink, particularly with the anticipated decline in liquidity. Consequently, he plans to focus on lower-time-frame charts in the upcoming sessions, aiming for quick trading opportunities while awaiting clearer directional confirmation.
Regarding the immediate outlook, the analyst remarked that LINK’s intraday chart remains bearish and highly volatile, reflecting the current market uncertainty. Price movements have been fluctuating around critical levels, making it challenging to ascertain a reliable direction without strong confirmation. On a more optimistic note, he mentioned that a decisive breakout and sustained hold above the $12.85 intraday resistance could shift market sentiment positively. Should buyers succeed in establishing support above this level, it would create an attractive long opportunity, with an initial upside target near $14.40, where significant resistance lies.
Conversely, the analyst warned that a failure to maintain the $12.85 level—indicated by a retest followed by a decline—would favor bearish positions. Such a rejection could lead to potential short setups, as renewed selling pressure might push prices lower, particularly if broader market conditions remain cautious.
