Chainlink (LINK) Tests $16.15 Support, Eyes $32 and $51 Price Targets

Chainlink (LINK) is currently consolidating near $16.15 as traders monitor key support levels and potential breakout patterns. The cryptocurrency has formed a higher low following a recent pullback from its July high near $20, reinforcing a bullish technical structure. Analysts are pointing to potential price targets at $32 and $51 if the asset manages to retest and hold above its descending trendline [1].

LINK recently dropped below its 20-day and 50-day moving averages but is now retesting its 200-day EMA. Technical indicators suggest that if the 200-day EMA holds, the price could stabilize and begin a new upward movement toward $20, potentially extending to $25 and $40 [1]. The ascending broadening wedge pattern remains intact, offering a long-term bullish case. Liquidity is also building under $15, which signals strong buying interest in that critical support area [1].

According to Solberg Invest, a clean breakout above the descending trendline could initiate a rally, with $32 and $51 as long-term price targets. The firm suggests a retest of the breakout zone before a new bullish move, a pattern often seen in well-defined technical formations [1]. The RSI stands at 43.52, indicating neutral momentum, while the MACD histogram shows mild bearish pressure but no acceleration, suggesting potential for market stabilization [1].

On-chain data also supports a bullish outlook. Whale holdings have increased by 13% since early July, reaching 3.84 million tokens. At the same time, LINK supply on exchanges has dropped from 283 million to 276.88 million, indicating reduced selling pressure and increased long-term holding [1].

Chainlink remains above its 50-day moving average, aligning with previous Elliott Wave patterns. If the current bullish wave resumes, the $32 target becomes more attainable, with $51 as a longer-term objective [1]. Market participants are now watching for further confirmation of strength above $16.15 and potential follow-through buying.

[1] Source: [1] LINK Retests Support Near $16, Key Levels Point to $32 and $51 Targets Ahead (https://cryptofrontnews.com/link-retests-support-near-16-key-levels-point/)