Chainlink price at make-or-break point while global markets tumble

Chainlink price has seen a massive collapse over the past five days, resulting in a retest of a crucial barrier. This downswing is not localized to the crypto markets and seems to originate on Wall Street after the Fed tightens the interest rates. This development has caused a massive blow to not just tech stocks but also stay-at-home stocks like Netflix, Peloton, Zoom Video Communications and so on. Due to the overall bearish nature of the markets, a breakdown of the immediate support level could be the key to triggering another leg down for LINK.

Chainlink price rests before discovering its momentum

Chainlink price slid below the trading range’s midpoint at $25.92 on January 13. A failure to recover led to a 27% crash in less than a week to where it currently trades - $19.46. This downswing flipped the $24.61 support into a resistance barrier. 

As LINK hovers above the weekly support level at $18.81, buyers need to quickly make a decision before bears take control. A breakdown of the said barrier will trigger a 20% crash to the next weekly support floor at $14.94. This is where investors can enter short and wait for LINK to move lower.

There is a good chance Chainlink price will sweep below the aforementioned level and retest the range low at $13.38, bringing the total downswing to 31%.

LINK/USDT 1-day chart

While things are looking grim for Chainlink price, a bounce off the $18.81 support barrier will provide buyers with a chance at a comeback. If bid orders start to pile up, LINK could rise higher and retest the immediate resistance barrier at $24.61.

Only a daily candlestick close above the 50% retracement barrier at $25.92 will indicate a resurgence of buyers and invalidate the bullish thesis. Hence, market participants can place their stop-loss at or above this barrier.

Assuming Chainlink price manages to flip above $18.81, investors can expect the oracle token to make a run for the 33.62 resistance barrier.