In a recent daily technical update, analyst CryptoWzrd emphasized that Chainlink (LINK) closed its most recent trading session with a notable price increase, raising hopes that the upward trend may continue. This is seen as a positive signal, especially as the price movement is accompanied by an improvement in trading volume – a factor that often reflects stronger participation from buyers.
Notably, the LINK/BTC pair has also shown a clear recovery from the extreme oversold area, further supporting the argument that the market is gradually escaping the previous selling pressure. This development indicates that investors have begun to return with a more optimistic mindset, and the market may be preparing for a new advance – not only in the short term but also potentially shaping a more sustainable growth trend in the medium term.
Closing the trading session with gains for LINK/USD and LINK/BTC
In a recent extended analysis, CryptoWzrd highlighted that both LINK/USD and LINK/BTC ended the daily trading session with bullish candles. This is considered an important signal, further reinforcing the view that market momentum is gradually shifting towards the buyers. Notably, when this pattern appears on higher time frames, it reflects a clearer positive shift in market sentiment following the recent correction.
According to CryptoWzrd, for the growth trend to be truly confirmed, LINK/BTC needs to continue maintaining this trajectory by forming additional consecutive bullish candles on the daily chart. He emphasizes that a strong rebound from the extreme oversold region not only alleviates some selling pressure but also reaffirms the expectation that the bullish trend may continue in the coming weeks.
If the current momentum is maintained, the oversold area will act as an important foundation for a stronger growth phase. This could be the starting point of a new expansion period for LINK, especially in the context of the overall market sentiment trending towards improvement and cash flow gradually returning to leading altcoins.
Price target: $30 – $40, key support at $20
CryptoWzrd forecasts that, with the upward momentum returning, Chainlink has a strong chance of testing the resistance level at $40 in the coming days. Before reaching this milestone, the $30 region will serve as the first important resistance level. However, he believes this level could be breached relatively easily if the buyers continue to maintain their advantage and the cash flow into the market remains stable.
On the contrary, the $20 region is assessed as a key support level. This is an important 'line of defense' to preserve the long-term growth outlook of LINK. As long as the price remains above this level, the dominant bullish structure of LINK will remain intact, even when short-term corrections occur.
CryptoWzrd also emphasizes that in the short term, he will closely monitor chart setups on lower time frames. By closely tracking daily patterns, he can identify quick trading opportunities while maintaining an overarching view of the larger growth trend that is forming. This approach supports a flexible short-term strategy while ensuring no sustainable bullish potential is missed in the medium and long term.
Impact from Jackson Hole: Extreme volatility
According to the analysis, the intraday volatility of LINK has become particularly intense, largely stemming from the reaction following the Jackson Hole Symposium – a macroeconomic event that global investors always closely monitor. The strong fluctuations indicate a high sensitivity of the cryptocurrency market to signals from monetary policy, forcing traders to maintain heightened vigilance against unexpected movements.
CryptoWzrd believes that a retracement below $26.5, followed by a bullish reversal signal, will create a potential buying setup with an expansion target towards $31 and even higher. This is considered a significant opportunity for patient traders to leverage the short-term correction as a springboard for a bullish strategy.
Conversely, if LINK remains below the $26.50 level without showing clear signs of recovery, the market is likely to enter a sideways state. This is a condition that often discourages many traders, as the lack of strong price momentum tends to increase the risk of 'noise' signals in the short term.
As the weekend approaches, CryptoWzrd provides a balanced and realistic assessment. He notes that liquidity conditions are often lower during the weekends, which can reduce or amplify price volatility. Therefore, traders need to maintain patience and discipline in their strategy, rather than chasing short-term swings that can easily trigger FOMO.
