Rally

The decentralized oracle network ChainLink and its native token, LINK, have staged a price recovery amid the broader cryptocurrency market’s bounce from a recent significant correction.&nbsp; 
Despite experiencing a 16% <a href="https://www.newsbtc.com/news/ethereum-goes-budget-friendly-transaction-fees-drop-to-lowest-since-2016/" target="_blank" rel="noopener ">price retracement</a> over the past month, LINK has regained its stronghold, rising 5% to $13 in the past 24 hours after hitting a six-month low of $11 on Friday. Still, cautionary signals have emerged that caught the attention of crypto expert Ali Martinez.&nbsp; 
<h2 id="bearish-signals-for-chainlink">Bearish Signals For ChainLink&nbsp;</h2> 
In a recent <a href="https://x.com/ali_charts/status/1809982806463832157" target="_blank" rel="noopener nofollow">social media post</a>, Martinez raised concerns about a pattern visible on LINK’s daily chart, suggesting the potential for a substantial price correction ahead.&nbsp; 
Specifically, the analyst highlighted a possible retest of the neckline of the head-and-shoulders pattern during the recent upswing to $13.&nbsp; 
According to Martinez, this pattern indicates a continuation of the <a href="https://www.newsbtc.com/news/bitcoin/is-the-bitcoin-bottom-in-price/" target="_blank" rel="noopener ">downtrend </a>until the right shoulder is broken, meaning that the ChainLink price would have to break above the $20 level, the top of the right shoulder, to invalidate this scenario. 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/PvPfVDLJ/" alt="ChainLink" width="1814" height="858"> 
If this scenario is as predicted, ChainLink could face a 45% correction. Martinez previously <a href="https://x.com/ali_charts/status/1808938326717587512" target="_blank" rel="noopener nofollow">highlighted </a>the likelihood of such a correction if LINK were to break below the $12.70 support level.&nbsp; 
The token’s price might retrace significantly in this bearish scenario, potentially reaching as low as $6.60. Notably, these levels were last witnessed in September 2023, before the commencement of the overall market uptrend that began in November of the same year. 
<h2 id="key-levels-for-link-s-price-recovery">Key Levels For LINK’s Price Recovery</h2> 
Another analyst, Crypto Ambrosio, presents similar downward scenarios for the ChainLink price in a recent analysis of key indicators.&nbsp; 
The analyst <a href="https://x.com/CryptoAmbrosio/status/1810244257552437329" target="_blank" rel="noopener nofollow">suggests </a>that if the 20-week exponential moving average (EMA), depicted by the yellow line in the chart above, remains above the current price action, it would serve as a notable bearish signal for the token. However, breaking above this indicator situated at $14.75 would invalidate this bearish outlook. 
Additionally, Crypto Ambrosio noted a downtrend pattern in the <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-to-hit-new-heights-analyst-predicts-10x-growth/" target="_blank" rel="noopener ">Relative Strength Index</a> (RSI), further supporting the notion of a new downtrend for ChainLink. To counter these bearish signals, it is crucial for LINK to hold the $12 support level, as noted by the analyst.&nbsp; 
Ambrosio also believes that if ChainLink forms a Falling Wedge pattern and breaks the resistance at $15, it could signal a bullish reversal and pave the way for further price recoveries toward its yearly high of $22.89, reached in March. 
The token must overcome key upper resistance levels while trading at $13.28 to initiate a <a href="https://www.newsbtc.com/news/dogecoin/dogecoin-price-decline-looms-as-bears-cut-short-recovery-key-levels-to-watch/" target="_blank" rel="noopener ">potential price recovery</a>. Upon analyzing the LINK/USD daily chart, the token will likely encounter its first significant challenge at the $13.52 price level, which has acted as a resistance for the past two months. 
Moreover, to invalidate the extension of the bearish scenario and surpass the 20-week exponential average, the ChainLink price would need to surpass and consolidate above the $14.38 resistance level.&nbsp; 
Featured image from DALL-E, chart from TradingView.com&nbsp;

Analyst Predicts ChainLink (LINK) Rally To $13 Could Result In 45% Price Correction, Here’s Why

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