Chainlink price prediction is gaining attention as LINK shows early signs of recovery after a long period of downside pressure. The token recently printed a buy signal on the daily chart, followed by RSI confirmation and a breakout above a key resistance level.
$10.00–$10.20 Zone Turns Into Key Support Level
On the daily chart for LINK/USDT, there is a noticeable shift from bearish behavior to a more balanced one. LINK declined from levels between $14-$15, forming lower highs and lows.
The decline came to an end with a candlestick shadow that indicated a strong buy interest around the $7-$8 levels. LINK has been moving in a narrowing channel since March, indicating a constant interest from buyers as well as creating an ascending trendline.
Furthermore, the downward resistance led to the formation of a symmetrical triangle, a chart pattern that usually comes before a breakout move.
However, LINK was able to break through this resistance, allowing the asset to get back above the $10.00-$10.20 region, which has already become support after multiple rejections.
Source: X
Also Read: Chainlink Price Prediction: LINK Eyes Explosive Growth to $16 with Bullish “Buy” Signal
Key Levels Shaping Chainlink Price Prediction
Following confirmation of the breakout, resistance will be the next area to consider. Resistance level one will be near $11.00, while the next area of interest is the broader range from $11.80 to $12.20. These zones were previously acting as support prior to the move down.
Going up to the level of $12.40 could make LINK approach a resistance on a higher timeframe. Breaking out from the mentioned area could signal a longer period of recovery. However, some dangers could be expected as well.
Dropping below the level of $10 and returning to the former triangle formation could be a fake-out. Consequently, the significance of the support levels at $9.20 and $9.00 should not be underestimated.
Strong Demand Zone Signals Potential Upside for LINK
In addition to short-term analysis, a wider perspective reveals that LINK has been trading at rather depressed levels when compared to previous performance periods. LINK has maintained a long-term support range of above 900 days, going back to 2023.
Source: X
Despite the improved fundamentals, including better ecosystem development, adoption in the real world, and improvements related to the token itself, the current price level remains relatively low compared to the previous cycle.
As a result, any return to previous peaks could generate a significant percentage increase in comparison to the current price level.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: XRP ETF Holdings Surge to $1.41 Billion After Strong $11.28 Million Inflow
