LINK trades at $13.35 after a 4.13% gain and holds above the buy level set at $12.70.
The first target of $20.70 aligns with the 0.618 Fibonacci retracement on the daily price chart.
The second target of $25.30 sits near the 0.886 Fibonacci retracement level and prior market resistance.
Chainlink (LINK) has bounced from a critical support zone near $12.70, opening potential upside targets at $20.70 and $25.30. The latest technical setup indicates a buy trigger above $12.70, with a protective stop loss at $10.00. This aligns with Fibonacci retracement levels pointing toward significant price objectives in the coming weeks.
https://twitter.com/mindandtrading/status/1954721384309092630 Price Structure and Key Levels
The daily chart shows LINK consolidating after a sustained decline from its yearly high of $30.94. Buyers have defended the $12.70 support, a level that has previously acted as a launch point for upward moves. A stop loss at $10.00 has been marked to limit downside risk if the pattern fails.
Fibonacci retracement levels highlight $20.70 as the first major target, aligning with the 0.618 retracement zone. The second target at $25.30 is positioned near the 0.886 retracement level, historically acting as a resistance area in trending markets.
A decisive daily close above $12.70 could indicate strengthening bullish momentum. Traders are watching for a sustained move above this zone to confirm a breakout.
Volume Trends and Market Context
Recent trading sessions have shown an uptick in volume, suggesting increased participation near the support level. This rise in activity coincides with multiple retests of the $12.70 area, adding weight to its significance as a buy trigger.
The chart indicates a period of sideways consolidation over the past weeks, with LINK attempting to establish a base. Sustained higher volume during upward price movement could help validate the projected targets.
If momentum carries LINK beyond $20.70, market attention may shift toward the $25.30 level. This target aligns closely with prior reversal points, reinforcing its potential importance in market psychology.
Potential Scenarios and Risk Management
A clear plan has been outlined: buy above $12.70 with an initial target at $20.70, followed by $25.30 if strength continues. Stop loss placement at $10.00 serves as protection against unexpected breakdowns.
Failure to hold above $12.70 could see LINK retest the $10.13 zone. Below this, the $9.28 low would become the next key level, based on recent chart history.
The defined strategy provides a structured risk-to-reward framework for traders navigating current volatility. This approach allows participation in potential upside while managing downside exposure effectively.
With LINK now trading at $13.35 after a 4.13% daily gain, market participants are closely monitoring whether this bounce will develop into a sustained rally. The question remains: will buyers maintain control and push toward $25.30, or will resistance halt the advance?
