Chainlink Drops Below Key Trendline: Support Levels Tested at $10 and $7.50

• Chainlink is testing critical support levels at $10 and $7.50 after breaking below its trendline.
• A break below $10 or $7.50 could indicate a further price decline for Chainlink.
• Traders are watching if Chainlink can recover or continue to decline from these support levels.

Chainlink had recently broken below a rising trendline, which suggests a retest of key areas of support at around $10 and $7.50.During the price drop, as depicted in the analyst’s chart on April 8, LINK moved almost close to the $20 mark before retracing back, where current support is being held at $10 and $7.50. This trendline break represents a crucial point for Chainlink, where a bigger drop may mean serious tests of the lower price levels.   

Therefore, traders are currently monitoring these support zones to determine whether the price will bounce or continue downward.

Chainlink Key Support Levels

The chart provided by Ali indicates two major support levels: $10 and $7.50, which are crucial for Chainlink’s price. As LINK struggled to hold above the trendline, it reached a level of $10. It assumes that at the immediate support level, buyers might try to step in and stabilize the price. In case $10 breaks down, the next support area will be crucial at $7.50. The next few days will be critical in deciding whether Chainlink holds on to its bullish momentum or enters a bearish phase.

Looking at the retracement from the recent highs, it also implies that Chainlink could experience a long consolidation phase. And if these support zones break down, it further opens up for the price to drop down.

Bearish Trend After Trendline Break

After a strong rally, the value of Chainlink got hit hard and broke below the trendline. This rain check past the trendline left a stark worrying picture of further narrative sells into the market.For many, the break below the trendline serves as a huge bearish signal. Also, this kind of price action usually tests prior support zones. The next two support levels of $10 and $7.50 will play an important role in ascertaining the next direction of LINK.

To add to the fray, the breakdown of this key trendline signals an increase in bearish momentum probably for the short term. Under this scenario, if the supports are not held, then negative market sentiment could prevail.

What Next for Chainlink Price Action?

The big question remains, will Chainlink hold on to its support levels at $10 and $7.50 or will it keep descending?

At the moment, price is under heavy pressure due to the trendline break and overall market sentiment. The long-term outlook is uncertain for Chainlink, who has been quite weak recently. Investors and traders wait with bated breath for the first signs of a reversal, failure to do so will see further declines. The price action at the critical support levels will likely shape near-term Chainlink price development. Whether the asset holds its own or moves onto lower tests will be extremely crucial for market investors.