Chainlink LINK Tests Critical Support Level as Traders Watch for Rebound Opportunity

Chainlink's LINK token is hovering NEAR the $20 support level after failing to maintain momentum above $27. The asset currently trades at $21.43, reflecting a 6.66% weekly decline, with market participants closely monitoring the $20.78-$19.50 zone as a crucial defense area.

A decisive close above $22.02 could reignite bullish momentum toward the $24-$26 range, with $30.43 serving as a longer-term target. Technical analysts point to the Ichimoku cloud's upper boundary as a historical rebound zone, indicating potential for recovery if support levels hold firm.

Trading volume remains moderate at $1.38 billion, reflecting cautious market sentiment. The upcoming trading sessions will likely determine whether LINK resumes its upward trajectory or enters deeper consolidation below the $20 threshold.