Chainlink price has enjoyed a smooth run since the start of May, moving crisply within an uptrend price channel.
Each time LINK hit the lower end of this channel, the buyers stepped in to push it higher, keeping the uptrend running for more than four months.
But the token is once again at that very crucial lower edge, and the traders are watching closely if it will turn around or break.
The latest chart from Milk Road, shows LINK price hovering just above this key support. At the time of writing, it trades near $21.30, which sits almost exactly on the lower trendline that has guided the entire rally.
Why This Level Matters So Much For LINK Price
A rising channel acts like a highway for price action. As long as LINK continues to trade above the lower line, that means that buyers are still in control and the overall uptrend is still intact. But if the price drops below it and can’t get back to it in a rush, the story changes.
A clean break would mean that selling pressure is stronger than it has been for the last few months, and that would be followed by a more severe pullback or more sustained period of sideways action.
Marketeers prefer to wait for decisive volume on a breakdown to ensure the move is legitimate and not some quick shakeout. Right now, the volume remains moderate, leaving traders on edge about whether this test will end with a rebound or a slide.
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What to Watch Next For Chainlink Price
If buyers defend the channel floor and push LINK higher again, the next upside targets remain the mid-channel area around $25 and eventually the upper band near $29.
On the other hand, if support fails and LINK closes beneath the channel with conviction, a deeper retrace to $18 or even $16 could be on the cards.
The overall crypto market will likely determine what happens next. Bitcoin’s volatility and shifting mood already alerted traders to be cautious. If Bitcoin stabilizes or for the better, it may give Chainlink the boost it needs to resume its long-term trend.
For now, LINK price sits at a crossroads. Hold the trendline and the rally lives on; lose it, and a bigger correction could be the next chapter. Traders are keeping their eyes glued to this level, knowing that the next few sessions could set the tone for Chainlink’s price action heading into October.
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