Chainlink Rejected at $26 but Support at $21.15 Holds

Chainlink (LINK) has faced rejection from the $26 high time frame resistance after forming a bearish engulfing candle. Price now eyes the $21.15 support level, which is reinforced by strong technical confluence.

LINK’s recent rejection at $26 has temporarily slowed bullish momentum, with price retracing from its high time frame resistance. However, a key support zone is emerging at $21.15, a level backed by multiple technical indicators. If buyers defend this level during a retest, LINK’s bullish structure will remain intact, and a rotation toward higher objectives becomes highly probable.

Key Technical Points:

- Rejection at $26: Price was capped by high time frame resistance, leading to a bearish engulfing candle.
- Critical Support at $21.15: Confluent with the 50-day moving average and 0.618 Fibonacci retracement.
- Next Target $28.34: A confirmed bullish retest could open the path to this high time frame resistance.

LINK’s reaction at $26 highlights the importance of this resistance zone. The bearish engulfing pattern that formed here suggests profit-taking and the presence of sellers, leading to a retest of the value area high. Despite this rejection, the retracement appears orderly, with price action respecting key structural elements that still support a bullish outlook.

The $21.15 level now stands as the critical line in the sand. This zone is not only a horizontal support but also aligns with the 50-day moving average and the 0.618 Fibonacci retracement. Such a confluence often serves as a strong foundation for reversals or trend continuation. If LINK revisits this level and demand emerges, it would confirm the presence of buyers and validate the ongoing bullish structure.

Market structure remains favorable as long as higher lows are respected. Even after the rejection, LINK has not broken below key structural supports, meaning that the overall trend bias remains intact. A successful retest of $21.15 would reestablish bullish confidence and allow for continuation toward the next resistance target at $28.34. Without a breakdown, the broader market narrative still leans toward continuation higher.

What to Expect in the Coming Price Action:

If LINK holds $21.15 during a retest, bullish continuation becomes the most probable outcome, with $28.34 serving as the next upside target. However, a failure to maintain this support could weaken the structure and open the door to deeper corrective moves before any renewed upside momentum develops.