Chainlink’s native token, LINK, is currently trading within a well-defined price range, reflecting a period of consolidation as the wider cryptocurrency market searches for direction. Noted analyst Ali Martinez has offered key insights, outlining potential price targets for LINK’s next major move.
In a recent analysis of the 12-hour chart, Martinez observed that LINK has been moving between a support level of $11.89 and a resistance level near $14.64. This pattern has held steady over multiple trading sessions. This price action suggests a balance between buyers and sellers, with upward moves stalling near the top of the channel and dips consistently finding support around $11.89.
Technically, this channel represents a consolidation phase after previous volatility and could be setting the stage for a more decisive trend once the price breaks out. The key resistance at $14.64 remains the major barrier for a bullish move. A confirmed breakout above this level, especially with strong trading volume, could renew upward momentum with a potential target of $17.00. Conversely, a drop below the $11.89 support could shift the outlook, potentially leading to a deeper correction toward $10.00. For now, this support level has held, reinforcing the channel’s structure.
At the time of writing, LINK is trading at $12.21, having declined by 10.95% over the past week amid a broader market downturn. However, its monthly loss of just 1.09% suggests the selling pressure may be a temporary correction rather than a structural shift, indicating that recent buyers could return to profitability if prices stabilize.
In other developments, Chainlink has acquired Atlas, an order flow auction protocol developed by FastLane. According to the Chainlink team, this acquisition enhances its value capture by expanding the reach of its services into new areas of decentralized finance (DeFi) and helping to improve MEV (Maximal Extractable Value) recapture.
With a market capitalization of $8.65 billion, Chainlink ranks as the 13th largest cryptocurrency globally.
Frequently Asked Questions
FAQs Chainlink Trading in a Range
Beginner Questions
What does it mean when Chainlink is trading in a range
It means the price is repeatedly bouncing between two specific levelsa clear support price and a resistance pricewithout breaking out in either direction for a significant period
How can I identify a trading range on a chart
Look for a period where the price makes multiple highs at a similar level and multiple lows at a similar level Connecting these highs and lows with horizontal lines will show you the range
Is trading in a range a good or bad thing for Chainlink
Its neutral in itself It indicates a period of consolidation and indecision in the market after a previous move Its neither inherently good nor bad but it presents specific trading opportunities
Whats the difference between support and resistance in a range
Support is the lower boundary where buying pressure tends to push the price back up Resistance is the upper boundary where selling pressure tends to push the price back down
Strategy Trading Questions
Whats the basic trading strategy for a rangebound market
The classic strategy is buy near support sell near resistance Traders aim to profit from the price bouncing between these two levels
What are the risks of trading a range
The biggest risk is a breakout or breakdown where the price moves decisively above resistance or below support This can turn a profitable range trade into a significant loss if youre on the wrong side
How do I know if the range is about to break
Watch for increasing volume on a push toward a boundary A strong breakoutbreakdown is often accompanied by much higherthanaverage trading volume Also watch for multiple failed attempts to breach a level which can weaken it
What tools can help confirm a range
Technical indicators like the Relative Strength Index or Stochastic Oscillator can help identify overbought conditions near resistance and oversold conditions near support adding confidence to reversal trades
Should I use stoploss orders when trading a range
Absolutely Always place a stoploss order just outside the range This limits your loss if the price breaks out against your position
Advanced Market Context Questions