Key Levels to Watch for a Breakout to $30.94, LINK Price Poised for a 58% Rally?

• LINK’s $18 support shows strong buying pressure, setting the stage for a breakout above descending resistance.
• A breakout above $24 could pave the way for LINK to target $30.94, signaling a potential 58% rally.
• Failure to hold $18 support risks a bearish continuation, emphasizing the importance of key levels for traders.

LINK’s price dynamics have captivated market attention, showcasing a compelling descending triangle pattern on the daily timeframe. Currently priced at $19.96, LINK has repeatedly tested critical support near $18, indicating strong buying pressure. A potential breakout above the descending resistance could propel the price to $30.94, marking a remarkable 58.21% rally.

Descending Triangle Tightens Momentum

According to analyst Carl Runefelt, LINK’s price action displays a descending resistance line formed by lower highs and a robust flat support at $18. This consistent support level has prevented declines, reflecting buyers’ commitment. Furthermore, the narrowing triangle suggests waning volatility and an imminent breakout.

The descending resistance line has been a recurring challenge for LINK. Each rejection reinforces bearish momentum, contributing to the tightening triangle. Nevertheless, the persistent $18 support underscores its significance as a pivot level for potential trend reversal.

Besides, consolidation within the pattern indicates momentum accumulation. This phase often precedes a decisive price movement, either upward or downward. However, the flat support zone and the well-defined resistance highlight the importance of monitoring these levels.

Breakout Scenario: Targets and Risks

A breakout above the descending triangle signals a bullish reversal. Notably, the projected target aligns with historical resistance near $30.94, a critical zone for market participants. In this scenario, LINK could face initial resistance around $24 before aiming for its primary target.

However, failure to hold the $18 support could lead to a bearish continuation. This move would invalidate the breakout scenario and expose the price to further downside risks. Consequently, traders should monitor these levels closely to anticipate potential market direction.

Moreover, LINK’s recent interaction with the descending resistance hints at growing bullish interest. If buyers overcome the resistance, it could ignite significant momentum. Hence, traders may consider positioning themselves strategically to capitalize on the anticipated move.