Chainlink recently broke $25 after an interesting few days, rising double-digits in a single day to stage a test of $27. The price was initially rejected at this level, which would suggest that the momentum does not have as much support as expected. This puts the altcoin in a precarious position as the next move could determine what trend takes form from here. Chainlink Price At A Crossroads In a TradingView post, crypto analyst CryptoPilot highlighted where the Chainlink price currently is and the difficulties it is facing. It continues to trade below the $27.3 resistance, and with the latest rejection, is now moving toward the lower boundary of the ascending channel. In this case, the altcoin risks a price collapse toward the $15-$17 level before its overextended move. It also aligns with the previous price performances when the price has been rejected in similar patterns, leading to a further downward move. There is also the possibility that the price will continue to rally, and that is only if there is a sustained move above the $27.3 resistance. Breaking this level with strong volume could trigger a rise toward the top of the channel. This channel top lies at the $45-$52 level, suggesting that the price could double if the bulls take control. The major levels to watch now involve the resistance at $27.3, then with support lying low at $18-$19 before the channel support at $15-$17. Next is the resistance after breaking $27.3, which lies at $34, all of which lies within the ascending channel structure that began back in mid-2022. Sellers Could Run Out Too Another analyst who goes by irritated.eth on the X platform has mentioned that the current level where Chainlink is sitting is historically a sell zone. This is seen in the fact that whenever the price pushes upward a bit, sells mount and this breaks the price back down again. Given this, for Chainlink’s bullish trend to continue , the sellers would have to be exhausted, and the analyst points out a factor that could hint at this. First up is whether the price keeps rising to this sell zone, but sell volume shrinks. This would manifest in a steady uptrend, meaning that sellers are running out of tokens . Then, there is the lack of sharp dips in this sell zone. Finally, if the price is able to break out of this zone above $40 and retest it as support, it would mean the sell-offs are exhausted.
