Chainlink’s price has been soaring with strong momentum, aiming to break through a barrier it has been consolidating around for three months. If you’re considering entering this breakout, it’s worth noting the high potential for significant movement in the price.
After a post-ETF sell-off, the cryptocurrency market has stabilized, leading to a notable rebound for leading cryptocurrencies in the past two weeks. Among them, Chainlink’s native token, LINK, has notably surged, marking a 35% increase in the last eight days. With optimism building for an Altcoin rally, speculation grows on whether Chainlink’s price will push past the $30 mark.
A bullish breakout from the channel pattern is poised to unleash the accumulated buying momentum, offering potential growth opportunities for Chainlink (LINK) investors. Concurrently, the development of the cup and handle pattern signals further positive movement in the LINK price trajectory.
Intraday trading volume for the LINK coin has surged to $1.6 billion, reflecting a notable 43% gain. This heightened trading activity underscores increased market interest and participation in Chainlink.
For nearly three months, Chainlink’s price performance has lagged, characterized by oscillations between two diverging trendlines within expanding channel patterns. While this sideways movement may have tested the patience of retail traders, it has served as an opportunity for smart money participants to accumulate this asset, positioning themselves for potential future gains.
Chainlink (LINK) Price Surge and Future Outlook
Amid renewed buying pressure in the cryptocurrency market, Chainlink’s price has demonstrated resilience above $13.6, surging to a new yearly high of $18.34. This upward movement has been accompanied by a significant increase in the value of open futures contracts linked to LINK, rising from $256 million to a current high of $506 million. Such growth in open interest signals a substantial influx of new capital into the market.
Currently, buyers are challenging the upper boundary of the channel pattern, with an intraday high of 6.73%. A successful bullish breakout from this pattern would likely accelerate bullish momentum, targeting potential levels of $24.5, followed by $28.7.
However, it’s worth noting that Chainlink’s price may consolidate above the recently reclaimed $17.5 in the coming week, stabilizing the price trend in preparation for future growth.
Chainlink (LINK) Weekly Analysis
Examining the weekly timeframe chart reveals that the recent surge in price has successfully breached the neckline resistance of the Cup-and-Handle pattern. This pattern, typically observed at the bottom of major downtrends, suggests the potential for a reversal in trend. Should the weekly candle close above the $17.5 neckline, buyers will find a favorable launching point to target the $30 potential.
Bollinger Bands indicate an upswing in the upper boundary, signaling active buying of Chainlink. Additionally, the Average Directional Index (ADX) shows an uptick at 15%, indicating that buyers have managed to regain strength during the recent consolidation period.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
