Key Takeaways:
- Chainlink (LINK) is testing a major breakout point in a falling wedge pattern on the daily chart, with a bullish structure emerging.
- A clean break above $13.27 could fuel a parabolic rally, but volume and buyer strength remain critical factors.
- Despite short-term pullbacks, bulls hold majority dominance, hinting at underlying market confidence.
Chainlink (LINK) is tightly coiling in a textbook falling wedge, a bullish reversal charting pattern. The asset is now pushing up against the top of the wedge, with increasing volume indicating growing demand for a breakout, says a crypto market expert.
However, the chart for the day illustrates that LINK rose as high as $13.27 before pulling back marginally to $13.10, but the pullback may be merely the precursor to something more.
Volume increases around the level of resistance usually precede breakout movements, and that’s what we’re observing in LINK’s structure right now.
The falling wedge has been active since the early part of March, and following weeks of ranging, today’s test around the $13.27 resistance may indicate if LINK speeds higher or corrects for one last shakeout.
For confirmation, a strong daily close over $13.27 with sustained volume. If so, $15.40, $17.50, $20.00, and even $26.50 are in play in a short- to mid-term context.
Chainlink Bulls in Control, Dominance at 50.94%
Tactically, bulls seem to be in command for the time being. At 50.94% dominance in the order book, the buyers are in control.
LINK’s latest move up to $13.27 reflects strong commitment, and the bounce from $12.50 has also made bullish conviction stronger.
If $13.27 gets cleared with momentum, the initial upside objectives will be $13.50 and $13.80. For risk control, a stop-loss of around $13.00 will protect against sudden reversals.
But if LINK falls below $12.90 with confirmation from volume, sentiment has the potential to change soon. Short towards $12.64 and $12.30 becomes possible under such a scenario, with a stop-loss placed at $13.20.
Nonetheless, the chart structure has not had any recent higher highs from the $16 top, so the setup is still weak. Under such conditions, a broken breakout could be nothing more than the market probing liquidity ahead of a bigger directional move.
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