Will INJ and LINK recover or drop further?

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

---

Injective ($INJ):

Overview

Injective faced rejection from the $16.85 resistance, a key previous structural low that was broken down earlier. After attempting to consolidate above the 200 EMA on the weekly timeframe for four weeks, INJ has now fallen below it, currently trading at $13.

The market remains choppy, and INJ is at risk of further downside if Bitcoin and the broader market experience more pressure. The next major support level sits at $10.325, which could be tested if BTC breaks below its recent lows.

Analysis & key levels

• Resistance levels:
  • $16.85 - Key level that needs to be reclaimed for any bullish momentum.
  • $22.50 - If $16.85 is flipped into support, the next upside target.
• Support levels:
  • $10.325 - Major support, which will come into play if the market shakes out further.

Potential scenarios

1. Bullish scenario:
   • INJ finds support at $13.00 and reclaims $16.85, allowing for a potential move to $22.50.
   • This would indicate buyers stepping in and market stabilization.
2. Bearish scenario:
   • If Injective loses $13.00, we could see a deeper drop toward $10.325, especially if Bitcoin faces further downside pressure.
   • A break below $10.325 would signal further weakness and shift focus to lower levels.

Cryptonary's take

Injective is currently trading in a weak zone, failing to hold above the 200 EMA on the weekly timeframe. It needs a strong base formation here to avoid further downside.

Right now, patience is required-INJ must reclaim $16.85 to confirm bullish strength. Until then, the risk of testing $10.325 remains on the table, depending on broader market movements. For now, it's a waiting game.

---

Chainlink ($LINK):

Overview

Chainlink has broken below the $16.54 support level and is currently trading at $14.52, entering a new range between $12.51 (support) and $16.54 (resistance).

Looking at previous price action, back in November 2024, there was significant accumulation around the $14 region, which led to a massive rally up to $30. This suggests that $14 could act as a short-term consolidation zone, but the market remains shaky, and Bitcoin's price action will play a key role in what happens next.

Analysis & key levels

• Resistance levels:
  • $16.54 → The previous support that Chainlink lost, now flipped into resistance.
  • $19.20 → Next key resistance if Chainlink reclaims $16.54.
• Support levels:
  • $14.00 - $14.50 → Short-term consolidation zone from November accumulation.
  • $12.51 → Bottom of the range, a key support level that could be tested in the coming weeks.
• Market structure:
  • LINK has entered a new range between $12.51 and $16.54.
  • The 200 EMA on the daily timeframe is also trending downward, indicating bearish pressure.
  • Price is likely to continue chopping down to test $12.51, especially if Bitcoin weakens further.

Potential scenarios

1. Bullish scenario:
   • Chainlink consolidates around the $14 zone, forming a base before attempting to reclaim $16.54.
   • If $16.54 is flipped into support, we could see a move towards $19.20 in the coming weeks/months.
2. Bearish scenario:
   • If Bitcoin weakens further, Chainlink could drift down toward the $12.51 support level.
   • A break below $12.51 would indicate further downside risk, potentially leading to lower levels.

Cryptonary's take

Right now, Chainlink is in a choppy phase, with price action suggesting slow movement toward $12.51 if Bitcoin remains weak.

The key thing to watch is whether LINK can stabilize around $14 and form a base for a potential recovery. Until then, the best approach is patience-waiting for confirmation before taking new positions.

---