Chainlink (LINK) price surges with bulls targeting $35 after breaking key resistance

• Chainlink tests the 3-year downtrend resistance at $28.86; a breakout could signal upside toward $35–$40.
• LINK faces critical resistance at $29.954 (0.786 Fib), with bullish confirmation requiring an hourly close above $30.4.
• Rising trendline and strong support at $29.267 (0.618 Fib) reinforce bullish sentiment; failure could see retracements to $20 or $15.

According to analyst Ali, Chainlink (LINK) shows strong potential for a breakout to $34. The cryptocurrency, trading at $28.89 at press time, is approaching critical resistance levels. Ali emphasized the importance of an hourly close above $30.4 to confirm bullish momentum.

Rising Trendline and Fibonacci Insights

Chainlink’s price is supported by a rising trendline connecting higher lows, indicating sustained bullish sentiment. The 0.786 Fibonacci retracement level at $29.954 has become a critical resistance point after multiple failed attempts to close above it. The Fibonacci levels, derived from a swing low of $26.740 and a swing high of $30.947, highlight key price zones.

Notably, the 0.618 Fibonacci level at $29.267 serves as a pivotal support zone, with buyers stepping in during pullbacks. A breakout above $29.954 could trigger momentum toward $30.947, aligning with the 1.0 Fibonacci level. Further upside could see LINK reaching $32.202 and $33.872, supported by the 1.272 and 1.618 Fibonacci extensions.

Testing Long-Term Resistance

The second chart reveals that LINK is testing a three-year downtrend resistance line originating from its 2021 all-time high of $52.88. Currently intersecting at $28.86, this resistance is significant for LINK’s long-term outlook.

LINK has gained 10.62% over the week, supported by a trading volume of 91.91 million, signaling strong market participation. However, the Stochastic RSI indicates overbought conditions, with levels exceeding 80. Historically, such conditions often precede corrections or consolidations, suggesting potential short-term pullbacks.

Key Levels and Market Implications

A decisive breakout above $28.86 could push LINK toward $35 or $40, unlocking significant upside potential. Conversely, failure to sustain above this level might result in retracements to $20 or even $15. 

Immediate support levels remain at $29.267 and $28.767, aligning with key Fibonacci zones. For long-term momentum, breaking and sustaining above the downtrend resistance is critical. If achieved, LINK could target higher levels, reinforcing its bullish structure.