Chainlink (LINK) Price Analysis: Short-Term Dip Looms, but Bullish Setup Awaits

Chainlink is currently trading around the $23.00 mark and seems to be moving within a downtrend on lower timeframes. August turned out to be an excellent month for LINK as it saw substantial price breakouts and gains of over 70%, with the price peaking just slightly below the $28.00 mark. Now, with the bullishness fading and the overall crypto trend struggling to gain momentum, LINK seems to be headed toward lower levels once again. Let’s take a quick look at the latest LINK charts to see where the price could be headed in the short term.

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Key Takeaways

• LINK's price, hovering around $23.00, faces short-term downside risk after failing to break $24.60 resistance on the 1-hour chart.
• A symmetrical triangle on the 4-hour chart points to a potential drop to $21.30 if the bearish breakout persists.
• On the daily chart, a forming cup and handle pattern suggests LINK could rally to $31.00 if the broader crypto market turns bullish.

Analyzing the Charts

If we look at the latest 1-hour charts for LINK, the price is currently retesting support at $22.90 after a failed breakout of resistance at $24.60. This indicates that the price is lacking momentum in the short term, and a retest of lower levels below $22.90 is also possible.

Switching to the 4-hour timeframe, the price is displaying lower highs and higher lows, forming a symmetrical triangle. A symmetrical triangle pattern is a neutral pattern and can break out in either direction. However, the triangle here already seems to be breaking toward the downside, and the price could potentially retest the lower support at $21.30 in the coming days.

Zooming out to the macro timeframes, the overall structure for LINK is still leaning bullish, with some downward movement in the short term. On the 1-Day timeframe, the price has rejected $26.90, similar to January, and with the short-term correction, a potential cup and handle pattern seems to be forming, which is a bullish setup. If the broader market gains momentum again in the coming weeks, another bounce for LINK is likely, and the higher target of $31.00 and above will once again be in sight.

Final Takeaway: What is Next for Chainlink (LINK)?

To wrap things up, Chainlink's price action tells a mixed story. Short-term charts show LINK struggling to hold above $22.90, with a possible dip to $21.30 if selling pressure continues. Yet, the bigger picture on the daily chart keeps hope alive, as a cup and handle pattern hints at a potential climb to $31.00 and above if the crypto market catches a spark. Traders should keep an eye on these key levels and broader market trends to gauge LINK's next move.