Chainlink’s Breakout is Brewing: Can Bulls Overcome This Barrier?

• Chainlink is being held at $13.40, and a fall to $10.50 can be anticipated if the buyers fail to support this level.
• A breakthrough above $14.48 would trigger a rally to $17.00, $19.00, and $21.51 supported by growing trade volume.
• Breaking below $12.43 would erode bullish strength, increasing the possibility of a more significant pullback to lower prices.

Chainlink’s price is in a critical area, and analysts are debating whether it will be able to maintain key support. Recent price action indicates shifting momentum, and traders need to watch for breakout signals or the threat of lower prices.

Price Action and Technical Structure

Ali Martinez reports that Chainlink is trading at $13.404, down 2.83% on the weekly time frame. The asset continues to trade within a parallel channel, respecting both trendlines. Martinez highlights recent price action showing a high of $14.560 and a low of $11.839, reflecting strong volatility. 

Since early 2023, Chainlink has followed an upward trend, repeatedly testing the channel’s midline. He notes that a breakout above $27.500 led to a sharp pullback, driving the price toward its lower boundary.

Martinez identifies a crucial support zone near this lower boundary. He states that if Chainlink fails to hold this level, the price could drop toward $10.500. He also observes that historical price data indicates previous touches at this level have resulted in strong recoveries. Holding this support zone could push Chainlink toward $17.500, with traders watching for bullish momentum signals.

Breakout Signals and Resistance Levels

WSB Trader Rocko analyzes Chainlink’s 8-hour chart, where the asset recently surged 8.42% to $14.4808. He states that a breakout from consolidation signals a possible trend shift. The price rebounded from $12.43, a critical support level tested multiple times. Rocko emphasizes that rising trading volume during this move indicates strong buyer engagement.

Rocko identifies key resistance levels at $17.00, $19.00, and $21.51. He explains that if Chainlink holds above the breakout zone, the next upside target aligns with the green moving average, potentially reaching $25.73. However, he warns that a drop below $12.43 could invalidate the bullish structure, increasing the risk of further declines.