Chainlink is gaining fresh momentum after breaking above a major resistance area that had restricted price movement for several weeks.
The latest Chainlink price prediction is bullish because LINK is trading above the critical range between $9.60 and $9.75, a level that has been holding back prices amid the current market downturn.
In a Friday post, trader Sjuul commented that LINK managed to break out of its resistance, after which the price had been confined in a narrow range for quite some time.
This year, LINK faced significant sell pressure and moved towards the range of $7.20-$7.40. Afterward, the price began to rise gradually and form higher lows on its chart.
This formation is often indicative of increased buyer confidence because they begin to initiate their position at an early stage.
Source: X
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Chainlink Price Prediction Turns Bullish After Breakout
Chainlink’s price prediction for its newest update got confirmed following LINK’s breakout from the ascending triangle. This is formed where bulls continue to drive the price higher, but resistance remains constant.
LINK has been attempting multiple breakouts since March/April before succeeding in breaking out higher towards $10.20.
Traders need to see whether the LINK is able to hold the $9.60-$9.70 level after this breakout. The potential levels that will come next if momentum continues are around $10.50 and $11.00, which might favor the reversal scenario.
The trading volumes have increased, implying higher demand compared to the consolidation phase. Short-term retracements around the resistance are also likely. If LINK breaks below the support, its next range will likely be between $8.80-$9.50.
Daily Chart Signals Larger Recovery Structure
There is also an individual daily timeframe trend analysis, and here, there is yet another bullish factor about Chainlink’s price prediction. It is highlighted that LINK is apparently forming a descending broadening wedge after months of being within a downward trend channel since late 2023.
Breaking out the resistance line of the descending trend channel is considered to be one of the most critical technical developments for LINK recently.
Market participants believe that breaking out the daily price levels between $14.00 and $15.00 could end the negative technical setup prevailing over the last year.
Source: X
As seen in the daily chart below, there was considerable buying activity close to the $11.00-$12.00 level following the fall in February.
This buying activity played a role in stabilizing the market, thus forming the base of the present rally. With reference to the simplest breakout projections, the current Chainlink price prediction points to potential gains of around $20.00-$21.00.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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