Chainlink (LINK) recently ended a six-week consolidation period, reaching a new yearly high of $17.68. Despite this, LINK remains within a long-term horizontal resistance zone. Analysts are considering the possibility of a bullish breakout by the end of the year.

After dropping to a low of $4.90 in June, LINK struggled to break through a long-term descending resistance line. However, in September, the cryptocurrency managed to overcome this barrier. In November, the price reached a peak of $16.58, followed by a slow consolidation and ultimately a new surge to the yearly high.

Analysts and traders on the cryptocurrency platform X are optimistic about LINK's prospects. Some believe that LINK's price will soon break out of a symmetrical triangle and rise above $20. A capital rotation from cryptocurrencies like SOL and AVAX to ETH and LINK is expected.

According to Elliott Wave analysis, LINK may have started the fifth and final wave of a bullish trend that began in June. If this hypothesis is correct, LINK completed its fourth wave on December 18 and started its fifth. This is supported by a bullish breakout of the daily RSI from its trend line.

If LINK breaks out of its current channel, the target for the peak of the upward movement could be $23.75, which is 50% higher than the current price. This also coincides with the resistance line of the long-term ascending parallel channel and the long-term horizontal resistance zone.

However, despite the bullish forecast, a potential rebound from the channel's resistance line could lead to a 17% price drop to the channel's support level at $14.