Chainlink (LINK) may break out from an ascending triangle, potentially reaching £15.5 and £18 if it surpasses the £13 resistance level.
LINK’s price increase to £11.42 could trigger £4.62 million in short liquidations, while a drop to £10.66 may liquidate £2.61 million in longs.
LINK's 24-hour trading volume rose by 5%, indicating increased investor interest and participation amid a potential bullish trend.
Chainlink (LINK) has shown signs of bullish potential despite recent market struggles. A well-known crypto analyst has expressed a positive outlook for LINK, suggesting that the cryptocurrency could witness a significant price surge in the coming days.
Currently, LINK is forming an ascending triangle pattern according to the expert’s analysis. This is a bullish indicator that could signal a breakout if it sustains its momentum.
Notably, this pattern has been developing since August 2024, with the price now trading within a narrowing range. As of now, LINK’s price sits near £10.86, reflecting a 4.5% increase over the last 24 hours.
https://twitter.com/CryptoMichNL/status/1849896209055613229 Technical Patterns Suggest Potential Rally
Additionally, the expert highlights that if LINK manages to break out from this ascending triangle, it could see a substantial price movement. A successful breakout above the £13 resistance level might propel the price towards £15.5 initially, with a potential to reach £18 if positive sentiment remains.
For now, LINK’s price action remains constrained, needing more time for the pattern to mature. Analysts emphasize that a daily close above the £13 mark could pave the way for a stronger upward movement, suggesting a 15% rise from current levels.
Moreover, trading activity around LINK has been on the rise, with its 24-hour trading volume increasing by 5%. This uptick indicates growing investor interest and participation, hinting at a possible shift in market dynamics. Market observers believe that if LINK successfully breaks the critical resistance, it could attract more buyers and strengthen its upward momentum.
Liquidation Data Highlights Market Sentiment
However, despite the positive outlook, LINK has encountered challenges in sustaining upward momentum in recent weeks. The current major liquidation levels are positioned at £10.66 and £11.42. A price rise to the £11.42 mark could result in the liquidation of around £4.62 million worth of short positions.
Conversely, a decline to £10.66 would likely trigger the liquidation of approximately £2.61 million in long positions, according to data from on-chain analytics firm Coinglass. These liquidation levels indicate a high level of leverage among traders, making LINK’s price movements sensitive to market sentiment.
Currently, bears dominate the market, posing challenges for bulls aiming for an upward rally. The pressure from bears suggests that sustained bullish sentiment will be essential for LINK to overcome the £13 threshold and target higher price levels. As LINK continues to trade within this tight range, traders and analysts closely watch its movement around key resistance and support levels.
Outlook Remains Cautiously Optimistic
Therefore, as LINK navigates this critical phase, market participants are monitoring the asset’s ability to break through resistance. If LINK successfully surpasses the £13 level, it could signal the start of a new bullish cycle, potentially attracting increased investment activity.
However, a failure to break out could see the asset remain within its current range, delaying further upward movement. The coming weeks are crucial for determining the direction of LINK’s price trend.
The post Chainlink (LINK) Breakout on the Horizon: Expert Insights appeared first on Crypto News Land.
