The cryptocurrency market is currently experiencing a correction phase in major altcoins following a month of robust rallies. Among the top performers, Chainlink ($LINK ) and Uniswap ($UNI ) posted impressive gains of 117% and 103%, respectively, over the last 30 days. However, both tokens are now trading in the red as they undergo a consolidation phase, retesting critical support levels following significant breakouts.
Chainlink (LINK): Correction After a 117% Surge
Chainlink (LINK) recently concluded a spectacular 117% rally, with its price climbing from a monthly low of $14 to a recent peak of $30.94. This surge was fueled by heightened investor interest following reports of accumulation linked to Donald Trump’s World Liberty Financial initiative.
Currently, LINK is retesting the key $28.60 level, which previously served as resistance but now functions as a support zone. This pullback is viewed as a healthy correction, allowing LINK to validate its breakout and build momentum for potential future gains.
Next Steps for LINK
If LINK successfully reverses from this support level, the token could aim for its next major resistance at $38.30, which represents a potential 34% gain from its current price.
However, technical indicators such as the Relative Strength Index (RSI) suggest that LINK remains slightly overbought. A strong bounce from the $28.60 support zone will be crucial to sustain its bullish trajectory.
Uniswap (UNI): Retesting After a 108% Rally
Uniswap (UNI) has followed a similar upward trend, breaking through its multi-year resistance zone and rallying 108% over the past month. UNI’s price surged to a high of $19.35 before entering a corrective phase, in line with broader market dynamics.
At present, UNI is retesting the $16.40 level, a former resistance zone that has now turned into a support level. A successful retest here could pave the way for further upside potential.
Next Steps for UNI
If UNI manages to hold the $16.40 support level, it could target the next resistance zones at $20.26 and $23.30. This represents a potential 41% upside from the current price. Unlike LINK, UNI’s RSI remains neutral, providing room for a recovery bounce in the coming sessions.
Market Outlook: LINK and UNI's Path Ahead
Both LINK and UNI demonstrate resilience as they confirm their respective breakouts by retesting key levels. This pattern is often seen as a bullish continuation signal, indicating that these tokens may be gearing up for further gains.
However, the broader market sentiment, including Bitcoin dominance, will play a crucial role in determining whether these potential reversals materialize.
For investors, the critical support levels to monitor are $28.60 for LINK and $16.40 for UNI. A decisive bounce from these levels, accompanied by strong trading volume, could mark the beginning of another upward leg in their bullish trends.
As always, traders should remain cautious and monitor broader market indicators to navigate the evolving cryptocurrency landscape effectively.
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