Chainlink is in a "breathless" tug-of-war: This price level could determine a 30% bounce.

Chainlink (LINK) is entering a phase of trading within a narrow range after recent strong fluctuations. Both technical indicators and data from the order book indicate a fierce "struggle" between the buyers and sellers, promising a significant move in the near future.

Technical Picture: LINK stabilizes around an important price area

On the daily timeframe, LINK is stabilizing around the 22.2 – 22.3 USD range, regarded as an important pivot point in the short term for traders. This is an area where the market continuously tests and reacts, clearly reflecting the hesitation of both buyers and sellers about the next direction.

The short-term moving averages indicate that the picture is not very positive. Specifically, the 9-day EMA and the 20-day EMA have begun to move sideways, signaling a lack of strong momentum on both sides. Although LINK has attempted to break above the 9-day EMA, the upward momentum could not be sustained, indicating that the buyers have not yet truly regained control. The overlapping of the two EMA lines and their proximity to the current price reflects a market that is in a consolidation phase, ready for a decisive breakout.

LINK Price Chart 1 Day | Source: TradingViewMeanwhile, the MACD indicator continues to remain in the negative divergence zone, suggesting that the advantage still slightly leans towards the sellers. However, the gap between the MACD line and the signal line is gradually narrowing, indicating that the downward pressure has started to weaken. If the MACD line crosses into the positive zone, this could become a strong catalyst for a new recovery.

Adding to this picture, the RSI is fluctuating in the range of 40 – 50, indicating a balanced state, not falling into the overbought or oversold zone. This also means that the price of LINK has the potential to break out in either direction, depending on market sentiment fluctuations as well as liquidity strength in the upcoming period.

The RSI and MACD indicators of LINK on the 1-day chart | Source: TradingViewTechnically, Chainlink is facing several important levels that could determine the next direction. On the upside, the level of 23.83 USD is acting as the nearest barrier. If the price can break through and hold above this level, market sentiment is likely to improve, opening up opportunities to reach higher levels around 25.17 USD and 25.42 USD. These are key resistance levels that could pose significant challenges for the buyers.

On the contrary, the range of 22.12 – 22.08 USD is acting as a short-term support, helping to limit the downward trend in volatile sessions. However, the more important defensive point is at 20.01 USD. If this area is breached, selling pressure may increase significantly, putting LINK in a risky situation with the potential for a deeper decline.

Chainlink Order Book: The Supply and Demand Picture

The supply-demand picture from order book data shows that some large liquidity clusters have the potential to directly influence the price movement of Chainlink in the short term.

On the buy side, the $20 level stands out with a significant bid "wall," reaching around 27,772 LINK. This is seen as an important buffer that could help mitigate selling pressure as the price retreats, corresponding to an adjustment level of about 10% from the current range. Further down, additional support layers at $18 and $15 are also forming, respectively associated with a potential decrease of 19% and 32%. These points indicate that buyers are setting up multi-layered defenses to limit the risk of a deep decline.

On the contrary, on the sell side, the pressure comes from quite strong resistance "walls". Specifically, the market is currently facing dense sell walls at important levels: 26 USD ( corresponding to a potential increase of 16.7%), 28 USD ( +25.7%), and especially the heavy resistance zone at 30 USD ( +34.6%). Breaking through these barriers requires extremely strong buying pressure, but if successful, it could open up room for an explosive growth cycle.

This distribution reflects a state of tense equilibrium: the buyers have a clear defensive advantage at lower levels, while the sellers control important barriers above. This means that any breakout, whether upward or downward, will require a strong push to break through the current stalemate.

Trading Prospects

For long-term traders, the range of 22.1 – 22.2 USD is seen as a potential entry order as this is an important support area. In case the upward momentum is reinforced, the levels of 23.83 USD and 25.17 USD will be reasonable profit-taking points in the short term. If LINK can break decisively above the threshold of 25.42 USD, the outlook will broaden, with the target aiming towards the range of 28 – 30 USD thanks to the increasing bullish momentum from buyers.

Meanwhile, for short-term traders or those who prefer to Short, opportunities may arise if the price fails at the resistance levels of 23.83 USD or 25.17 USD. In that case, the adjustment target could revert to around 22 USD, or even retest the 20 USD mark. However, it is important to note that at 20 USD there is a dense "buy wall" that is capable of absorbing large selling pressure and may limit the downward momentum if there are no negative shocks from the broader market.

Overall, Chainlink is in a "breathless" tug-of-war as both buyers and sellers are concentrated around key technical levels. If the bulls succeed in breaking above 23.83 USD, the market could witness a new growth phase. Conversely, losing the 22 USD level will increase the risk of selling pressure and pull LINK into a deeper correction.

In the context of industry-wide liquidity and unpredictable investor sentiment, LINK is likely to soon break the current consolidation phase to choose a clearer direction in the short term.

Taylor