Chainlink (LINK) is once again drawing attention as price action reacts strongly near a major support zone on the 2-week chart. On Feb 14, crypto analyst, Butterfly shared that LINK is bouncing from the lower boundary of a large symmetrical triangle formation.
This level has acted as a base for buyers multiple times in past years, and the market response suggests accumulation may be underway again.
This type of triangle formation began building after the peak of the LINK price in the bull cycle of 2021. Since the top was established, the price began a long consolidation phase. This is characterized by a tightening price action that is leading to a well-defined pattern of lower highs and higher lows.
The upper trend line connects the major swing highs established in 2021, 2024, and 2025. The rising lower boundary connects the corrective lows established in 2022 and 2023.
This type of price action is typical of a market that is balanced and not dominated by either the bulls or the bears. Each attempt to move higher is met with selling pressure, and each test of the support levels is met with buying pressure.
Read More: Chainlink (LINK) Price Analysis: Can Bulls Defend the $8.47 Level to Trigger a Rebound?
Compression Pattern Signals Possible Expansion
Symmetrical triangles may indicate a volatility compression situation, which means that price movement becomes more compact as it approaches the apex.
It appears that Chainlink is currently in the final stage, which usually displays significant price movement. The depth analysis of the chart indicates that there is a gradual reduction in volume within the symmetrical triangle, which usually occurs during a maturing situation.
The projection on the chart suggests that if the buyers are able to break through the descending resistance line, they could take LINK to the region of $45-$50 first.
The measured move of the triangle, considering the height of the triangle from the 2021 high to the low in 2022, also suggests that there is a possibility of a much larger move.
Butterfly had even suggested a move to as high as $60 if the bulls are in control. However, as discussed, there is a need to confirm the move. Without breaking through the resistance line, Chainlink seems to be stuck in a range.
Chainlink Breakout Confirmation Remains the Key Trigger
The same situation has also been analyzed by the analyst Alex Choi, who stated that the price is approaching the apex of the triangle and is located near the lower boundary. The area, according to the analyst, has a high bounce potential, as this area has always been defended by the buyers.
The next step for the bulls would be to see a clean close above the descending trendline on a 2-week candle, and this would be a good sign that the trend is shifting upward. If the price goes below the rising support line, it would be a negative sign and would lead to a retracement zone.
Read More: Chainlink (LINK) Rallies Toward $10 as Resistance Break Sparks Bullish Momentum
