Chainlink Price Analysis: LINK Gets Support Amid 23% Monthly Crush. Is This the Cycle Low to Buy or Will it Break Lower?

Chainlink (LINK), one of the crypto market's prominent "blue chip" cryptocurrencies, appears to be approaching a new cycle low according to market analysts. This could present a massive opportunity for investors to accumulate the digital asset. The blockchain oracle network's native token, LINK, has had a rough past month. Data shows it has declined by over 23% over the last 30 days and with it being  22.08% over just the last 7 days. However, in the last 24 hours, LINK has recovered and traded 6.40% rise to currently trade at $14.52.

Chainlink Data Chart (CoinMarketCap)

Despite the recent volatile price swings, Chainlink remains a heavyweight in the crypto market. It has a circulating supply of 587,099,970 LINK out of a max supply of 1 billion. This puts its market capitalization at an impressive $8.5 billion, making it the 16th largest crypto asset. LINK also boasts significant daily trading volume and liquidity. Over the past 24 hours, its trading volume across all exchanges total over $628 million.

Investors and industry observers will be keeping a close eye on the commentary from Chainlink co-founder Sergey Nazarov and Dr. Marwan Alzarouni, CEO of the Dubai Blockchain Center, which is happening today. The two are engaged in a conversation at the BlockchainLife event that could provide insights into the project's future.

Earlier this year, LINK was one of the top-performing cryptocurrencies, igniting hopes that it could initiate a substantial rally in the months ahead. The token's price resilience and the project's fundamental utility have cemented its status as a "blue chip" crypto asset and could in the future prove to be a giant in the crypto space

Chainlink (LINK) Price Analysis 

From a technical analysis perspective, despite the 6.40% gain today, LINK has had a torrid month reflected in the head and shoulders pattern that has formed on the charts typically considered a bearish reversal signal. Today's surge came after the token found support at an ascending trendline that it touched yesterday April 14th, kicking off a period of bullish momentum. The daily Relative Strength Index (RSI) currently reads 33 which is an oversold reading and so we are most likely to witness more upward movements in the near term.

LINKUSD Price Chart (TradingView)

If the bulls continue to drive the price action, analysts are watching for a potential retest of the broken ascending trendline near the neckline of the head and shoulders pattern as a key resistance level. On the other hand, if bearish forces regain control, the first level of support to watch is the ascending trendline currently around the $11.90 low recorded yesterday. A break below that could open the path towards the $8.30 level. Today's trading has seen LINK open at $14.09, with an intraday low of $13.70 and a high so far of $14.60 as of this writing.

One aspect considered bullish for LINK is that investors have been abandoning centralized exchanges in favor of self-custody methods, reducing short-term sell pressure. However, the overall technical picture remains uncertain amidst the volatility.