LINK — Approaching a Critical Moment
Chainlink (LINK) is again about to challenge the upper boundary of its descending channel. This barrier has been in place for most of 2024.
Each time LINK tested this upper trendline, it faced rejection. However, the pressure is building for a potential breakout.
Key Technical Points To Watch
Descending Channel: LINK has been stuck in a descending channel, continuously forming lower highs and lower lows. Resistance: A breakout above the descending channel marks the first and most crucial step. However, LINK still faces multiple resistance levels on its journey higher. As a first challenge, LINK has to break past the $12–$14 zone, which has acted as strong resistance in the past.
Mid-Term Target After A Successful Break Out
Breaking out of the descending channel should ignite a massive upward move. The mid-term target for this breakout is around $28, representing a substantial rally from current levels.
Intermediate Resistances
On the way to $28, LINK will need to clear several hurdles:
The $14 resistance level (historical rejection zone)Given previous price action, the $16–$18 range could be a barrier.
What Else You Need To Know?
- Watch the Volume: A breakout without a significant volume increase may lead to a false breakout.
- Market Sentiment: Logically, the broader crypto market sentiment will also play a crucial role in LINK’s performance. If Bitcoin and Ethereum continue showing strength, it could provide the tailwinds needed for LINK to make a decisive move.
