- LINK breaks out of a falling wedge near $12.96 after months of decline, signaling a bullish reversal with $35 as a potential target.
- Strong accumulation near $11.20 and breakout above $13 resistance indicate renewed buyer strength and a shift in market structure.
- The descending wedge breakout and higher lows confirm bullish momentum, suggesting the end of LINK’s prolonged bearish cycle.
According to World Of Charts, Chainlink (LINK) has broken out of its extended downtrend, which is a definite signal of a bullish reversal. After months of downtrend, the breakdown of a descending wedge pattern signifies the reversal of market sentiment. The current structure supports the possibility of a major rally, with a bold projection targeting $35. At the time of analysis, LINK trades near $12.96, showing early signs of recovery.
From mid-December 2024 to early April 2025, LINK followed a steep downtrend. It remained confined within a descending channel while forming consistent lower highs and lower lows. This prolonged structure reflected bearish pressure dominating the market. However, a solid support zone near $11.20 emerged and held through multiple tests.
The horizontal demand area near $11.20 became crucial. LINK rebounded each time it tested this level. These reactions aligned with key price actions seen in January and March. Consequently, this zone reinforced its strength as a pivotal demand level. Moreover, buyers showed interest every time LINK approached this range.
In early April, LINK managed to break above the upper boundary of the descending channel. This breakout marked a key technical shift. Additionally, it coincided with a retest of the previous resistance area near $13. The price briefly pulled back but quickly regained momentum. Hence, this pattern confirms increased buyer control over the trend.
Descending Wedge Breakout Hints at Bullish Trajectory
The overall setup resembles a classic falling wedge. This pattern typically precedes bullish reversals, especially after prolonged selling pressure. The breakout from this structure aligns with historical trends, where LINK often rallies post-wedge. The last time a similar pattern emerged, LINK surged over 100%.
Moreover, the projection illustrates a steep move toward $35. This would imply a potential 170% rise from current levels. Besides, the shift in market structure—from lower lows to a breakout—adds confidence to the bullish case. The $13 level acts as a critical pivot, where structure and resistance converge.
LINK’s current movement suggests the end of its bearish cycle. The combination of structural breakout and strong horizontal support hints at continued upside. Additionally, price action alone shows growing bullish momentum. Although volume data is absent, the repeated defense of $11.20 implies strong accumulation.
