- Chainlink nears a breakout above $15 on the monthly chart with a symmetrical triangle targeting a potential $100 long-term upside.
- LINK trades in an ascending channel with strong support at $13.84 and Fibonacci-backed resistance levels at $17, $21, and $28.
- Technical indicators show rising momentum and bullish divergence with RSI recovery and flattening moving averages signaling price strength.
Chainlink (LINK) is flashing strong bullish signals across long-term timeframes, pointing toward a potential breakout. The monthly timeframe shows a symmetrical triangle nearing its apex. Prices have compressed between higher lows since 2019 and lower highs since 2021. The current price action hovers around $14.95, closing a monthly candle with a 10.66% gain. Consequently, traders and analysts see $15 as the critical breakout level.
Moreover, the breakout could trigger a massive rally. The triangle’s measured move suggests a long-term target of $100.77. That represents a 708% potential upside from the breakout area. Historically, LINK has shown explosive moves after extended consolidation. Hence, the triangle breakout aligns with the asset’s prior price behavior. The monthly timeframe reinforces this setup’s strength, emphasizing a high-probability move if momentum persists.
Price Action Within an Ascending Channel
On the weekly chart, LINK trades inside an ascending channel since mid-2022. The price bounced from the channel’s lower boundary near $13.84. Currently, it moves toward immediate resistance at $15. A breakout beyond this level could see LINK pushing toward $17, $21, and even $25. These levels align with Fibonacci retracement zones and prior resistance.
Besides, the 0.618 Fibonacci level sits near $20.22, suggesting a major price target. Above that, the $28 to $31 zone carries historical importance. Notably, the 1.272 Fibonacci extension strengthens the case for resistance around $28. If LINK crosses these zones, the broader breakout narrative gains more weight.
Technical Indicators Show Building Momentum
The RSI has bounced from oversold levels and now trends toward neutral territory. This signals a strengthening bullish momentum. Additionally, the momentum histogram displays a shift from red to green bars. This indicates growing interest and less selling pressure.
Moreover, a bullish view is supported by moving averages. Consistent consolidation is shown by the 50-week moving average flattening above the price. The present price is surrounded by a shorter-term moving average, which indicates minimal volatility and potential breakout possibilities.
