Bitcoin has once again captured global attention by hitting an all-time high of $76,203, a price surge partly attributed to Donald Trump’s victory in the recent U.S. presidential election. This unexpected political shift has sparked a bullish wave across the entire cryptocurrency market, with investor sentiment turning particularly optimistic. One coin to watch in this wave of enthusiasm is Chainlink (LINK), which has been showing signs of an imminent breakout. Market analysts are eyeing LINK with confidence, forecasting a potential rally to $40 as buying pressure intensifies.
Chainlink’s Technical Setup – Ready For A Breakout?
Crypto analyst ZAYK Charts highlights a compelling formation on LINK’s weekly chart: a “falling wedge” pattern. Typically, this pattern is known to precede upward movement, suggesting that LINK could be on the verge of a breakout. The critical level to watch is around $15, where LINK faces immediate resistance at the top boundary of the wedge. Breaking through this resistance is key; analysts predict that doing so could trigger a sharp price increase, potentially sending LINK toward the $40 mark and beyond.
The momentum is not just technical. Chainlink’s Relative Strength Index (RSI) on the four-hour chart has recently hit 71, signaling strong buying pressure. An RSI over 70 often indicates that buyers are pushing prices higher, and it appears that interest in LINK is steadily rising. This momentum has led analysts to believe that LINK could experience a sustained rally in the coming weeks, as long as market conditions remain favorable.
Derivatives Market Confidence and Growing Network Activity
Supporting this optimism is Chainlink’s performance in the derivatives market. Open Interest for LINK recently climbed to $203 million, and Funding Rates are showing a strong bullish tilt. Rising Open Interest suggests that more traders are entering positions in anticipation of a price increase, while higher Funding Rates indicate that traders are willing to pay a premium to maintain their bullish stance. This surge in derivative market activity reflects growing confidence in LINK’s future, with investors positioning for further gains.
Network activity on Chainlink has also surged significantly, highlighting increased user engagement. Data from blockchain analytics platform Santiment shows that Chainlink is currently leading the Real World Asset (RWA) sector in terms of development activity, boasting a remarkable 14,000% increase over the past 30 days. Additionally, active addresses on the Chainlink network jumped from 1,930 to 2,750 in just four days, suggesting that more users are interacting with the platform and contributing to its growth.
Outlook – Can LINK Reach New Highs?
With Bitcoin’s momentum injecting optimism into the market, LINK appears well-positioned for a breakout. Strong buying pressure, increasing activity in the derivatives market, and Chainlink’s expanding network usage all suggest that LINK could soon test—and potentially surpass—key resistance levels. If these trends continue, a $40 price target for Chainlink may soon be within reach, signaling yet another remarkable chapter in the cryptocurrency market’s ongoing rally.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
