With the crypto market facing another bearish day, Chainlink is on a slippery slope. With another rejection to surpass the $20 psychological mark, the consolidation prolongs in the LINK price trend.
As the bulls make another struggle to sustain dominance above the $17.74 support level, the broader market pullback warns of a breakdown rally. Will this breakdown crash Chainlink prices under the $16 support level? Let’s find out.
Chainlink Consolidation Nears Potential Breakdown
In the 4-hour price chart, the LINK price trend reveals a consolidation phase. The consolidation occurs between the lower support band at $17.74 and the upper band ceiling at $19.84.
With multiple rejections on both ends, the consolidation in Chainlink continues for nearly two weeks. The bearish influence over the consolidation phase continues to grow due to the prevailing downfall.
The declining trend in the crucial exponential moving average (EMA) lines continues. Furthermore, the 4-hour RSI line takes another dip near the oversold boundary line, as a new negative cycle tests the lower support band.
Analyst Reveals Network Slowdown
Amid the chances of a bearish breakdown, a recent X post by Ali Martinez reveals a network slowdown over the Chainlink network since November 30. This slowdown reflects increased chances of a breakdown.
Furthermore, the Bollinger Bands over the Chainlink-12 price chart are squeezing, reflecting trapped underlying momentum and hinting at a high-volatility move ahead.
Key Chainlink Price Targets
In case the Chainlink price manages a bullish reversal, the uptrend is likely to challenge the overhead ceiling. The overhead ceiling confluences with the 23.60% Fibonacci level and the 100 EMA line.
In case of a bullish breakout, the Fibonacci levels place the price target at $22.19 and $24.74. These price targets align with the 50% and 78.60% Fibonacci levels.
On the lower side, a bearish breakdown will likely test the $16 support level and another crucial support at $14.16. While the downside risk remains massive, a broader market stability will help LINK price regain bullish stand.
