Analyst Crypto Winkle has shared insights into Chainlink’s (LINK) current chart, highlighting a potential bullish breakout driven by a classic falling wedge pattern. The setup suggests that LINK could see substantial upward movement, with the expert noting several key price targets.
LINK is presently trading around $10.63, and if it breaks out of this wedge, the price may soon challenge these higher resistance levels.
What you'll learn 👉
LINK’s Falling Wedge Pattern Points to Potential Breakout
The main feature on Chainlink’s current chart is a falling wedge, defined by two descending trendlines converging over time. Such patterns are generally considered bullish, often signaling a reversal in price once the breakout occurs.
LINK has been moving within this wedge since mid-2024, and it appears to be nearing the lower boundary of the pattern, which may serve as a support zone.
Crypto Winkle noted that the lower boundary, around the $8 to $9 range, has historically acted as a support level, providing a foundation for price rebounds. If LINK continues this pattern, a breakout from the upper wedge line could lead to higher price targets, setting the stage for a potential rally.
Key Resistance Levels Mapped
According to the analysis, LINK faces several resistance zones if it breaks out upward. The first major resistance levels lie at $17 and $19, marking previous areas of interest where price movements have previously hesitated.
The tweet from Crypto Winkle also identifies a broader resistance range between $22 and $24, which is highlighted as a significant area to watch. These levels are expected to be crucial checkpoints on LINK’s projected path, marking potential halts in the upward momentum as it navigates through buyer and seller pressures.
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Indicators Show Potential Reversal of Bearish Momentum
Technical indicators add weight to the potential for a bullish reversal. The RSI hovers around 42.36, slightly above oversold territory. This position indicates that the selling pressure may be weakening, creating room for a possible price reversal.
Additionally, the MACD is close to a crossover point, with the MACD line sitting slightly below the signal line. A bullish crossover could signal an upward momentum shift if LINK breaks out of its wedge pattern.
A possible breakout trajectory suggests LINK could reach $17 and $19 before testing the resistance range at $22 to $24. Crypto Winkle’s tweet expresses optimism about LINK’s upward path, stating that this could be “the last time to grab LINK under $11.”
Based on the falling wedge setup, support and resistance zones, and indicator positioning, LINK appears poised for a rally if it breaches the wedge’s upper boundary.
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