In a challenging cryptocurrency market, Chainlink (LINK) has captured attention with an optimistic forecast from a prominent crypto analyst. Despite broader market sluggishness, this expert sees a bullish breakout on the horizon for LINK, which could soon see a price surge. Posting his analysis on X (formerly Twitter), the analyst suggested LINK could breach a significant resistance level, setting the stage for a breakout in the next one to two weeks. If successful, LINK could climb as high as $18, creating fresh opportunities for traders and investors.
LINK’s Technical Setup – An Ascending Triangle Nears Maturity
Since early August 2024, LINK has been shaping a classic ascending triangle on its price chart, a pattern often signaling an impending bullish breakout. Currently trading within a narrowing range, LINK is showing signs of consolidation, suggesting that momentum may be building toward a price explosion.
The analyst highlighted a crucial resistance level around $13. Should LINK close a daily candle above this threshold, it may rally by 15% to reach an initial target of $15.5, and if bullish sentiment sustains, it could even surge to $18. However, LINK needs to breach this resistance decisively for the upward momentum to materialize fully.
Current Price Momentum
As of now, LINK is trading at approximately $11.07, having gained over 4.5% in the past 24 hours. This price increase has been accompanied by a 5% uptick in trading volume, a positive indicator of increased investor interest and participation. Despite these gains, LINK has struggled to push past $11.42, a resistance level where traders have become over-leveraged, according to data from Coinglass, an on-chain analytics firm.
The current momentum indicates that while bulls are gradually gaining ground, a definitive shift won’t occur until LINK successfully overcomes the $13 mark. Until then, traders will likely monitor LINK’s movement closely for signs of a breakout.
Major Liquidation Levels – Will Bulls Prevail?
The on-chain data reveals that liquidation levels are concentrated around $10.66 and $11.42, highlighting potential barriers for both bulls and bears. If LINK’s price rises above $11.42, nearly $4.62 million worth of short positions could be liquidated, creating a favorable setup for bulls to capitalize on further upward momentum. Conversely, if the price dips to $10.66, approximately $2.61 million worth of long positions could be liquidated, reinforcing bearish pressure.
This dynamic indicates that bears currently have a slight edge, particularly if LINK’s price fails to break through the $13 resistance level. Nevertheless, the bullish outlook remains strong, particularly if the asset can maintain its current price range and avoid significant downward movements.
Also Read: Chainlink Bears Outpace Bulls By 500K Tokens – Why LINK Faces A Tough Road To $15
With the market waiting for a breakout, LINK’s potential ascent to $18 hinges on its ability to surpass the $13 mark. A successful breakout from the ascending triangle pattern could signal a new bullish phase, inviting more buyers into the market and pushing prices to higher targets.
The next few days will be crucial in determining LINK’s trajectory. If LINK’s technical indicators remain favorable, and trading volumes continue to rise, this crypto asset could become a standout performer even in an otherwise sluggish market.
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.
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