Despite a widespread weekly gain in the crypto market, Chainlink (LINK) continues to face significant bearish pressure, recording losses across multiple time frames. Since reaching a local price peak of $29.28 in December, the altcoin has dropped into a downtrend, losing over 56% of its value. Amid this adverse performance, renowned crypto analyst Ali Martinez suggests that LINK could soon see some short-term price recovery.
LINK Recovery Depends On Critical Trendline Support
In a recent post on X, Martinez shares a technical outlook on LINK, indicating that the altcoin may be poised for an upswing. This forecast is anchored on a crucial ascending trendline that has served as price support since mid-2023, facilitating a consistent formation of higher lows and higher highs.
According to Martinez’s trading chart, Chainlink appears to be heading toward a retest of the identified trendline near the 0.5 Fibonacci retracement level at $12.00. If LINK bulls manage to stimulate sufficient demand at this level, it could trigger a price bounce leading to a bullish reversal. Historical price patterns suggest that this rally could potentially elevate Chainlink’s price to around $19, marking the next resistance zone.
With strong buying pressure, the altcoin could even escalate to as high as $30, implying a potential 147% price appreciation from current levels. Conversely, if LINK fails to maintain support above $12.00, it might face an initial decline to around $10.00, with a possibility of trading as low as $5.00.
Chainlink Integrated Into PayPal’s Ecosystem
In other noteworthy developments, the prominent American payment platform PayPal Holdings has announced the integration of Chainlink into its cryptocurrency offerings. In a statement released on April 4, PayPal revealed that users can now buy, hold, send, and receive Chainlink and Solana (SOL) through both their PayPal and Venmo wallets.
This advancement marks a significant stride in the mainstream adoption of LINK, which is crucial for enhancing token demand moving forward. PayPal users also have access to other major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
At the time of writing, LINK is trading at $12.91, reflecting a 0.62% decline in the past 24 hours. Over larger time frames, the token maintains a bearish trend, with losses of 5.03% and 21.81% over the past seven and thirty days, respectively.
Investor sentiment for LINK remains predominantly bearish, as indicated by a Fear & Greed Index of 26, signaling near-extreme fear. However, analysts at Coincodex predict a potential price rebound, aligning with Martinez’s outlook, forecasting an increase to $15.32 in five days and $17.46 within a month.
