Chainlink (LINK) shows signs of a potential breakout after 639 days of consolidation. The asset is currently trading at $24.15, reclaiming lost ground.
Consolidation Below the Supply Zone
Chainlink has spent over 639 days consolidating under a defined supply zone. The asset has formed higher lows since its 2022 base while maintaining a rising channel. Each recovery from mid-level demand reflects steady absorption, setting the stage for stronger price action. Alex Clay (@cryptclay) noted that "The ChainLink Monthly Timeframe looks absolutely promising, with 639 Days re-accumulating below the Major Supply Zone."
Technical Alignment Builds Confidence
Price has reclaimed the channel midline and continues to trade above the 50-month EMA. The moving average has shifted direction, turning from resistance into dynamic support. This alignment mirrors conditions observed before Chainlink’s historic expansions in past market cycles. The market structure suggests confidence as LINK has converted previously challenging levels into footholds.
Testing the Supply Zone
The next major test is the supply zone, projected between the mid-$20s and upper-$20s. A monthly close above this band could create a vacuum, opening a path toward the higher channel boundary. If supply is within the zone, price could accelerate quickly due to the absence of heavy resistance clusters. Market watchers consider this the defining stage of the current cycle, as it determines whether LINK breaks the multi-year consolidation fully.
Chainlink finds itself at a critical juncture with a potential breakout ahead. Confidence in the technical setup may lead to significant changes if the price breaches the supply zones.
