Chainlink Poised for Potential Breakout as Market Eyes $37 Price Target

Spread the love
  • Chainlink trades at $13.42, showing a 3.07% increase, amidst forming a symmetrical triangle pattern on weekly charts.
  • Analysts predict a potential rally for LINK, with a breakout above $16 possibly pushing prices up to $37.278.

Chainlink (LINK) is currently witnessing a pattern that could potentially set the stage for a substantial increase in its value. Trading at $13.42, LINK has shown a modest rise of 3.07% over the last 24 hours, according to ETHNews.

This activity takes place within a symmetrical triangle pattern identified on the weekly charts, suggesting that LINK could be on the verge of a bullish movement.

This pattern, which began forming between the high of $22.87 on March 11 and the low of $11.01 on July 1, indicates a consolidation phase that is typically followed by a significant price movement. Analysts, including Ali on X, note that the TD Sequential has signaled a buy on the 4-hour chart, adding to the positive outlook for LINK.

If LINK breaks through the critical resistance level of $16.00, it could trigger a rally of up to 143%, potentially pushing the price to approximately $37.278.

chainlink-surge-TradingView
Source: Tradingview

Such a surge would not only reflect growing market confidence in Chainlink but also a robust interest in its technological capabilities.

Technical Analysis and Market Indicators

LINK has encountered persistent resistance at $13.66 through the first and second quarters, with the price correcting back to the support trendline at $12.08. Recently, LINK rebounded from this support, climbing to its current level and aligning with key moving averages, including EMA 20/50/100/200.

LINKUSD_2024-07-26_14-02-07
Source: Tradingview

Holding these levels could see LINK increase by 27.6%, aiming to retest the weekly resistance at $16.22.

The Relative Strength Index (RSI) and Awesome Oscillator (AO) on the daily charts currently show LINK just below the neutral 50 mark. For a recovery rally to gain momentum, these indicators need to maintain above their average levels.

Considerations and Risks

Despite the optimistic scenario, there is a downside risk. If LINK’s price closes below $11.04 on the weekly chart, it would negate the bullish pattern and could lead to a significant drop, potentially reducing its value by 60.9% to as low as $4.996, reflecting its weekly lows from June 19, 2023.

Santiment-LINK
Source: Santiment

The network activity on Chainlink has been relatively stable, with notable spikes in active addresses and transaction volume around April 8, 2024, which later returned to normal levels, indicating a temporary increase in user engagement.

The post Chainlink Poised for Potential Breakout as Market Eyes $37 Price Target appeared first on ETHNews.