Chainlink Pattern Signals Bullish Rally: Analyst Maps Path to These LINK Price Targets

Analyst Crypto Winkle has shared insights into Chainlink’s (LINK) current chart, highlighting a potential bullish breakout driven by a classic falling wedge pattern.

Cryptocurrency analysis platform Crypto Winkle has shared insights into Chainlink’s (LINK) current chart, highlighting a potential breakout setup.

The setup, visualized on a price chart, shows LINK trading within a falling wedge pattern. Such patterns are generally considered bullish, often signaling a reversal in price once the breakout occurs.

Highlighting the pattern, Crypto Winkle shared the following tweet, also noting several price targets and key resistance zones.

" @chainlink is setting up for a breakout with a classic falling wedge pattern!

Once this wedge breaks up expecting fireworks to $17, $19, and possibly $23!

Major resistance zones mapped at $22-24 – this could be the last time to grab $LINK under $11.

#Crypto #LINKUSDT"

As evident on the chart, LINK has been moving within this wedge since mid-2024. Currently, the price is nearing the lower boundary of the pattern, which may serve as a support zone.

The lower boundary, around the $8 to $9 range, has historically acted as a support level, providing a foundation for price rebounds. If LINK continues this pattern, a breakout from the upper wedge line could lead to higher price targets, setting the stage for a potential rally.

Multiple Resistance Levels in Sight

The analysis also identifies several resistance zones if LINK breaks out upward. The first major resistance levels lie at $17 and $19, marking previous areas of interest where price movements have previously hesitated.

The tweet also identifies a broader resistance range between $22 and $24, which is highlighted as a significant area to watch. These levels are expected to be crucial checkpoints on LINK’s projected path, marking potential halts in the upward momentum as it navigates through buyer and seller pressures.

Technical Indicators Point to Potential Bullish Reversal

Adding further weight to the potential for a bullish reversal are technical indicators.

The RSI currently hovers around 42.36, indicating that the selling pressure may be weakening, creating room for a possible price reversal.

Moreover, the MACD is close to a crossover point, with the MACD line sitting slightly below the signal line. A bullish crossover could signal an upward momentum shift if LINK breaks out of its wedge pattern.

In summary, the falling wedge setup, support and resistance zones, and indicator positioning suggest that LINK appears poised for a rally if it breaches the upper boundary of the wedge.

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