Chainlink (LINK) is attempting to reclaim a crucial area after recovering 10%, surpassing most of the market in the past day. Some analysts suggested that the altcoin is ready to break out to new highs, but warned that a rejection from the current levels could lead to volatile retests.
On Wednesday, Chainlink led the crypto market as it started to recover from the recent pullback, which saw most cryptocurrencies retest their range lows for the first time in two weeks.
However, the start-of-week correction halted the bullish momentum, sending the cryptocurrency’s price to retest its breakout zone, around the $23.50 mark on Tuesday. After testing this area as support, Chainlink rebounded and reclaimed the $24.50-$25 range, briefly hitting the $26.50 barrier on Wednesday morning before retracing.
Chainlink’s continued stability at the $23.86 level will be crucial for the rally to the range high. The market watcher noted that volatility below this range is possible as part of a volatile retesting process.
Rekt Capital explained that this level “has often acted as a volatile retest zone in bullish cycles, serving as a base for successful reversals, most prominently in mid-2021,” concluding that the cryptocurrency’s next move will be determined by a reclaim of the $23.86 resistance or a volatile retest of the $19.41 support.
According to the post, if LINK breaks through the current sell wall, around the $26.25-$26.75 levels, it will continue its run toward the $30 resistance, where another selling wall is situated.
As of this writing, Chainlink trades at $26.15, a 35% increase in the monthly timeframe.
