Key Insights:
- Chainlink price breakout from channel confirms upside target of $25 in the coming weeks.
- Whale accumulation at $6.30 formed a strong support base, reducing downside risk.
- Resistance at $15.22 may trigger selling pressure unless cleared with volume.
Chainlink (LINK) price broke out of a long-term descending channel, forming a bullish setup as it targets $25. The rally began after whales defended the $6.30 support zone, marking a key accumulation area. Technical indicators, on-chain data, and increased trading volume support the case for a mid-term upward move. However, LINK price must break past the $15.22 resistance to confirm the next phase of the rally.
Breakout from Downtrend Pattern Targets $25
Chainlink price confirmed a breakout above a descending channel spanning several months. Technical analyst World of Charts shared this breakout on April 21, highlighting a move above the $12.50 resistance. The structure now targets $25, reflecting a 127% rise from the breakout point.
The falling wedge had contained LINK price since late 2023. Multiple failed breakouts occurred before this confirmed move. This breakout flipped a series of lower highs and lower lows into a bullish reversal. The price now trades near $13.00 after reclaiming the key $12 pivot zone.
The $25 projection comes from the measured channel width. This width spans from a low near $8 to a top at $17. A full move to this target would return LINK price to its early 2022 levels. The bullish setup is also backed by rising momentum and positive structural changes.
Whales Accumulated 376M LINK at $6.30
On-chain analyst Ali Martinez confirmed large-scale whale accumulation near $6.30. Using data from IntoTheBlock, Martinez noted that 376 million LINK tokens were bought in this price zone. This area now serves as strong foundational support.
Martinez labeled this zone pivotal, showing confidence in the strength of this accumulation base. The data came from the Global In/Out of the Money (GIOM) model. Wallets in this zone are in profit and unlikely to sell quickly. This helps reduce downside risk.
Accumulation at $6.30 resembles previous support-based rallies in LINK’s history. In past cases, whales absorbing supply at a low level preceded extended upward moves. The current breakout may reflect a similar accumulation-driven push.
$15.22 Resistance Is the Next Key Test
Despite bullish trends, Chainlink price faced strong resistance near $15.22. Martinez highlighted this level using on-chain wallet data, identifying red clusters of bag holders at this price. These holders may sell at breakeven, causing pressure in this zone.
This resistance zone aligns with a key Fibonacci retracement level. It sits between the 2021 all-time high and the 2022 bottom. Repeated rejection around this level confirms its technical weight.
If LINK price cleared $15.22 with strong volume, it could open the path toward $20 and then $25. The previous failed attempts to breach this zone show it as a critical test. Volume and momentum must come into the picture to support the break, as that will make it possible to continue with the bullish structure
Technical Indicators Confirm Bullish Continuation
The breakout was supported by increased buying volume, as reflected in the 12-hour candle structure on TradingView. Chainlink price held higher lows starting from $11.00 in early April to form an ascending triangle that led to the breakout. On the same timeframe, the RSI and MACD signify a bullish divergence and trend momentum.
In addition, the top altcoin has regained the 200-day EMA, which has long been used to define whether the market is in bullish territory or not. Breaking above this level on higher time frames signals that the long-term trend has reversed. The EMA crossover was initiated in tandem with the breakout, enhancing the technical signal even more.
At the time of writing, Chainlink Price was bullish and trading above $13.00, which aligned the platform for the test of the $15.22 resistance level. In case volume stays high and whales keep accumulating, the road map to $25 stays reasonable.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
