Chainlink (LINK) is attempting to reclaim a crucial area after recovering 10%, surpassing most of the market in the past day. Some analysts suggested that the altcoin is ready to break out to new highs, but warned that a rejection from the current levels could lead to volatile retests.<\/p>\n
On Wednesday, Chainlink led the crypto market as it started to recover from the recent pullback, which saw most cryptocurrencies retest their range lows for the first time in two weeks.<\/p>\n
LINK recorded the second-best performance among the top 100 cryptocurrencies, with an 11% increase in the past day. Notably, the altcoin hit a six-month high of $26.76 on Monday, after recovering<\/a> 14% from the weekend lows.<\/p>\n As it hit its multi-month high, analyst Ali Martinez pointed out that Chainlink added nearly 3,000 new addresses<\/a>. According to the post, 2,995 new LINK addresses were created on August 18, the highest growth in 5 months.<\/p>\n However, the start-of-week correction halted the bullish momentum, sending the cryptocurrency\u2019s price to retest its breakout zone, around the $23.50 mark on Tuesday. After testing this area as support, Chainlink rebounded and reclaimed the $24.50-$25 range, briefly hitting the $26.50 barrier on Wednesday morning before retracing.<\/p>\n Analyst Rekt Capital asserted<\/a> that LINK is attempting to reclaim the $23.86-$34 price area after the recent performance. He highlighted that the lows of this range have historically been a \u201ckey support and successful retests here have enabled rallies to the Range High around $34.\u201d<\/p>\n Chainlink\u2019s continued stability at the $23.86 level will be crucial for the rally to the range high. The market watcher noted that volatility below this range is possible as part of a volatile retesting process.<\/p>\n The cryptocurrency\u2019s monthly close is one of the most important levels to watch, as closing above the range low would position Chainlink for a bullish rally continuation<\/a>. On the contrary, failing to reclaim this area in the monthly timeframe could lead to a deeper pullback toward the $19.41 level, not seen since the early August breakout.<\/p>\n Rekt Capital explained that this level \u201chas often acted as a volatile retest zone in bullish cycles, serving as a base for successful reversals, most prominently in mid-2021,\u201d concluding that the cryptocurrency\u2019s next move will be determined by a reclaim of the $23.86 resistance or a volatile retest of the $19.41 support.<\/p>\nLINK\u2019s Levels To Watch<\/h2>\n