Chainlink (LINK) Eyes Reversal After 36% Drop, Is a Breakout Imminent?

• Chainlink (LINK) has dropped 36% in 30 days, but signs of stabilization suggest a possible recovery.
• The 0.786 Fibonacci retracement level is acting as strong support, indicating a potential reversal.
• A breakout above the descending trendline could trigger an upward move toward $35.
• Market stabilization and key technical levels make LINK one to watch in the coming days.

Chainlink (LINK) has been hit hard by recent market volatility, plummeting 36% over the last 30 days and nearly 25% in the past week. The price reached a low of $13.47 as bearish sentiment dominated the market. However, with signs of stabilization, LINK is drawing increased attention, hinting at a potential recovery.

At the time of writing, Chainlink is trading at $14.32, reflecting an 8.11% drop in the last 24 hours. The token holds a market capitalization of $9.14 billion and a 24-hour trading volume of $1.22 billion. Despite its struggles, analysts suggest that LINK is approaching a critical reversal point that could spark a new bullish phase.

A well-known crypto trader, Satoshi Flipper, pointed out that LINK’s descending channel consolidation remains intact, with diagonal flag support holding strong. This formation suggests that the asset is still within a bullish structure despite its recent downturn. Traders see the current price range as an attractive entry point, anticipating a potential breakout.

Chainlink Targets $35 If Breakout Holds

Further supporting this outlook, Rose Premium Signal’s analysis highlights that LINK has found strong support at the 0.786 Fibonacci retracement level, a crucial zone where price reversals often occur. The token is now attempting to break above a descending trendline, if successful, this move could confirm the start of a new bullish wave, setting the stage for significant upside.

If LINK manages to break out, analysts are eyeing $35 as a key price target. This level represents a major resistance zone, and surpassing it could trigger a sustained rally. With the market showing early signs of stabilization and LINK finding support at key technical levels, the next few days could be crucial in determining its price trajectory.

Chainlink (LINK) Eyes Reversal After 36% Drop, Is a Breakout Imminent? 3

As Chainlink regains traction, investors and traders will be watching closely for confirmation of a bullish breakout. If momentum builds, LINK could be poised for a strong comeback, making it a token to keep on the radar in the coming weeks.

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