Chainlink ($LINK) is showing strong growth, overcoming significant resistance levels. Analysis points to a potential target of $55.39 in the long term.
Technical Patterns Indicate Bullish Momentum
ZAYKCharts analysts identified two key falling wedge patterns in Chainlink's price movement over the past three years. The first, observed from 2021 to early 2022, resulted in a bullish breakout. After momentum weakened mid-2022, the second wedge from 2022 to late 2024 also concluded with a decisive breakout in Q4 2024. These breakouts allowed Chainlink to surpass critical resistance levels of $13.50 and $17.50, which have now become support.
Price Action and Key Indicators Show Strength
At current levels, Chainlink approaches resistance at $30.32 with the support of steady trading volume. The slight overbought condition with an RSI of 67.73 does not hinder the momentum. MACD indicators suggest possible short-term momentum weakening, but a further breakout above $30.32 could restore it. Support at $27.50 might be tested during corrections.
Critical Levels to Watch for Continued Gains
Chainlink's price movement indicates a strong upward trend since late November, characterized by higher highs and lows. A breakthrough above $30.32 will confirm further growth with a target of $32.50. Failure to surpass resistance may lead to a correction toward $27.50 or $25.00. A price discovery phase is possible if the $55.39 target is reached.
Chainlink demonstrates strong bullish signals, confirming the end of a multi-year downtrend. Maintaining above key support levels ensures continued growth.
