Chainlink (LINK) has retraced from its recent highs, presenting what some traders see as a prime accumulation opportunity.
Analyst Alex Clay shared insights on LINK’s price action, highlighting its retest at a critical technical level. According to Clay, the market downturn has provided a strategic entry point for investors looking to capitalize on LINK’s bullish structure.
Clay’s analysis points to a Cup & Handle formation on Chainlink’s monthly chart. This pattern, often seen as a bullish indicator, consists of a rounded accumulation base (the cup) followed by a pullback (the handle) before a potential breakout.
#Chainlink
— Alex Clay (@cryptclay) February 5, 2025
The market dumps just brought us an opportunity to load coins at their dips🔥 $LINK is definitely one of them! Made a retest of the Key Zone also the neckline of C&H Monthly👀
Adding to my bag at this levels💼
Full Send #LINK 🚀 pic.twitter.com/WNo93l8zEs
LINK has already surpassed the neckline of this formation, confirming a breakout attempt. The current price action shows LINK retesting this breakout zone, a move that traders consider a bullish confirmation.
If this level holds, it could reinforce the uptrend and provide a foundation for further gains. Clay reaffirmed his confidence in the setup, stating that he is adding to his LINK holdings at this stage.
What you'll learn 👉
Key Price Levels Define LINK’s Next Move
Technical levels play a crucial role in assessing LINK’s trajectory. Resistance is seen at $25.00, a level where prior rejections occurred. Should the bullish momentum persist, the next resistance range extends between $35.00 and $38.00, with a potential long-term target above $50.00.
On the downside, LINK’s support sits between $18.00 and $19.00, the zone currently undergoing a retest. LINK trades at $19.9. If this level fails, the next significant support lies between $13.00 and $15.00. Market participants are watching whether LINK can maintain its position above $18.00, as a break below $17.50 could signal a deeper pullback.
Read also: Whale Activity Could Signal a Lido DAO (LDO) Price Surge – Here’s What to Watch
Market Sentiment and Future Price Outlook
Even with the overall market drop, LINK retains robust liquidity, showcasing a 24-hour trading volume of $1.17 billion. Although short-term sentiment seems negative, macro indicators indicate that Chainlink is still on a long-term upward trajectory. The end of its prolonged decline has transformed prior resistance levels into new support areas.
Should LINK stay above $18.00, experts predict a recovery towards $25.00, with possible gains reaching $30.00-$35.00. However, a drop below key support could see the price testing lower levels before regaining bullish momentum. The coming days will determine whether this retest solidifies LINK’s upward trajectory or leads to further declines.
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