Since the introduction of the Trump World Liberty team address on December 12, $LINK has seen a surge in value, rising by 29% in a short time.
This has brought DeFi and oracle solutions back into focus, with Chainlink (LINK) remaining the clear leader in the oracle space by both token market value and total value locked (TVL). However, despite its dominance, Chainlink’s market share has declined from a high of 70% during the DeFi boom in 2021 to around 53% today, as newer oracle protocols have gained traction.
On the technical side, Chainlink’s price is showing signs of a potential reversal. A Head and Shoulders pattern has emerged on the 4-hour chart, which is often viewed as a bearish signal. The pattern suggests a possible downside movement, with key support levels identified between $19.89 and $21.86. If $LINK closes below this zone, the price could potentially drop significantly, with analysts predicting a target of around $12.
According to well-known analyst Ali Martinez, if the Head and Shoulders pattern is confirmed, $LINK could fall as low as $14. Traders are advised to closely watch price action in this support area, as a breakdown below these levels could offer an ideal opportunity for short positions.
https://twitter.com/ali_charts/status/1872399237360619786?t=YlmTSoKiAtaI_wPTnnYqlg&s=19
Despite the recent price surge, Chainlink’s long-term outlook depends on how it navigates this technical resistance and the broader market environment. For now, the $19.89-$21.86 support zone remains a critical point of interest for traders and investors alike.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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