Chainlink (LINK) Price Analysis: Bears Target $20 Support as Trend Weakens

LINK is currently hovering around the $21.0 mark and is struggling to gain momentum on lower timeframe. As highlighted in our previous analysis, LINK is facing a trendline resistance on the daily timeframe, which has forced the price into lower highs. At the moment, the daily trend is bearish, and the price is likely to continue dropping in the short term. To shift this trend, LINK will need to reclaim higher levels with strong volume. Let’s take a quick look at the latest price charts to see where the price could be headed in the short term.

Our Chainlink Price Prediction Summary

• LINK is struggling below trendline resistance, keeping the daily trend bearish.
• The $20.0 support remains under pressure, with $17.5 as the next downside target.
• Bulls need strong volume and a break above $22.0 to shift momentum.

Analyzing the Charts

Looking at the latest 4-hour charts for LINK, the first thing to note is that a sell-off was triggered after the altcoin faced back-to-back rejections at the trendline resistance, forming a double top pattern, which is a bearish signal. With the sell-off being strong, the price failed to hold support at $22.0 and dipped toward $20.0 before making a slight recovery. The $20.0 region is also a strong area of support for LINK that we are watching closely at the moment.

Lower Highs Maintain Bearish Trend

Switching to the 1-day timeframe, the picture looks similar, with the trendline resistance forcing the price into lower highs and turning the trend bearish. This led to the recent sell-off in LINK, and now even the $20.0 support is likely to come under pressure from the bears.

50 SMA Adds to Downside Pressure

Another thing to notice on the 1-day timeframe is that the price is now trading below the 50 SMA (Simple Moving Average), which is another bearish sign. It is possible the price will retest the $22.0 resistance, where bulls will try to break above this level to gain momentum. However, if volume does not pick up, the $20.0 region will likely be tested again as bears put pressure on it. If this trend continues, the next support level we are eyeing for a potential sell-off is $17.5. That is also why our current LINK price prediction leans bearish.

Final Takeaway: What is Next for LINK?

In summary, LINK remains under pressure as repeated rejections at trendline resistance and trading below the 50 SMA point to a bearish outlook. The immediate focus is on the $20.0 support, which is at risk of further testing if volume does not improve. A retest of $22.0 is possible, but without strong buying momentum, the bears are likely to stay in control. If the current trend continues, the next key support sits near $17.5. For now, the indicators suggest LINK must reclaim higher levels with solid volume before any meaningful recovery can take shape.