Chainlink (LINK) has broken out of its long-term downtrend, showing strength above key resistance levels. A key pattern formation suggests further upside potential, with some analysts targeting $144 based on Fibonacci extensions. The crypto’s newfound momentum marks its first significant break from bearish control in several years.
LINK’s Technical Breakout Confirms Bullish Momentum
A chart shared by @CryptoELlTES indicates that LINK has decisively broken above the descending trendline that defined its downtrend since 2021.
The breakout is backed by a cup-and-handle pattern, a bullish continuation formation that typically indicates potential price growth. LINK had surpassed the $21.67 resistance level, which aligns with the 0.618 Fibonacci retracement level. Holding above this point reinforces the bullish thesis.
However, LINK is currently consolidating around $19.22, just below the breakout level, indicating potential short-term volatility before a sustained move higher. The analysis incorporates Fibonacci retracement and extension levels to outline potential price points.
The 0.236 ($8.729) and 0.382 ($12.358) levels served as accumulation and reaccumulation zones, where traders positioned themselves for potential upward movement. The 0.5 level ($16.367) marked a midpoint in LINK’s retracement, signaling a point where the cryptocurrency began regaining strength.
ChainLINK is Gearing Up for a Massive Move!
— @CryptoELlTES (@CryptooELITES) February 7, 2025
The downtrend from 2021 has finally been broken, and we’re holding strong above it.
🔗 Targets I’m watching closely:
1️⃣ $53
2️⃣ $100
3️⃣ $144
The momentum is building—stay tuned for what’s next!$LINK #LINK #Link $Link pic.twitter.com/rvoTNXiSaV
The 0.618 level ($21.676) was a critical breakout point, now being tested as support, reinforcing bullish sentiment. Moving higher, the 0.786 level ($32.336) represents the first major resistance within the new bullish phase, where LINK may face some selling pressure.
The 1.0 Fibonacci level ($53.824) is a key psychological and technical target, aligning with previous highs. Further ahead, the 1.272 ($102.856) and 1.414 ($144.232) Fibonacci extension levels suggest potential long-term targets for LINK, contingent on maintaining bullish momentum.
Read also: Monero (XMR) Price Hits Critical Resistance – Key Levels to Watch
Market Context and Chainlink’s Momentum Indicators
LINK is presently priced at $19.22, declining by 3.14% in the last 24 hours and 22.98% in the past week. Even with the temporary drop, the trading volume, presently at $699 million, indicates an increasing interest in the asset.
The next crucial step is LINK stabilizing above $21.67. If this happens, traders anticipate a push towards $53, followed by potential moves to $100 and $144 based on Fibonacci extensions.
While short-term retracements are possible, the technical structure remains bullish. The breakout above the long-standing downtrend suggests a potential multi-month rally. Maintaining support above $21.67 will be key in determining whether LINK continues its upward trajectory. With strong market interest and growing momentum, Chainlink could be gearing up for a major price move in the coming months.
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