Chainlink (LINK) is currently in a holding pattern, with indecisive daily candles and choppy intraday activity signaling a lack of clear direction. Traders are closely watching Bitcoin’s next move, as shifts in Bitcoin dominance often influence LINK’s price trajectory.
According to a recent update from analyst CRYPTOWZRD, LINK and LINKBTC have closed indecisively, reflecting market uncertainty. LINKBTC is forming a falling wedge pattern, a bullish technical formation typically seen in oversold conditions. A breakout above this wedge is crucial for LINK to trigger its next upward momentum.
CRYPTOWZRD noted that this breakout is likely to coincide with a decline in Bitcoin dominance. As Bitcoin’s influence wanes, altcoins like Chainlink usually strengthen, making Bitcoin dominance a key metric for anticipating LINK’s movement.
On the support front, $12.50 is identified as a critical level. A bounce from this point could fuel a rally toward resistance near $16. Conversely, holding below $12.85 may lead to extended sideways trading, with the market waiting for clear direction.
In the short term, the analyst is focusing on lower-timeframe charts for scalp trades amid the current volatility, while the broader trend develops.
Overall, LINK’s intraday action remains choppy and lacks strong momentum. A potential retest of $12.85 or a dip below it might offer a bullish reversal, potentially targeting $14.40. However, until Bitcoin’s market direction clarifies, patience is advised as LINK remains on standby.