Chainlink is approaching a breakout from a falling wedge figure. Tracking the market action, the price value has been testing the upper trendline resistance as the volume surge followed, supporting the break out further. Should LINK break the resistance and retest, there could be a probable uptick.
Potential targets for Chainlink
Analysis prepared by Rose Premium Signals shows a drop in price, likely within a correction phase, following a strong upward move. The chart also reflects a clear downward channel from previous months, indicating a bearish market trend that is slowly finding stabilization. This stabilization could set the stage for a potential price rally if the support holds and the market sentiment turns positive.
In the event that the breakout happens, Chainlink could rocket towards several targets as seen on the chart above. The first level of resistance is now at $15.40, but in the super bull case the next levels of resistance may be $17.50, $20.00, $23.80 and $26.50. These targets are based on the current technical outlook with the breakout for the falling wedge as a possible starting point for a large rally.
Volume surge supports the move
One of the critical indicators to watch is the increasing trading volume. A rising volume accompanying the price action suggests that more market participants are backing the breakout. This surge in volume adds weight to the bullish case, increasing the likelihood of a successful breakout and further price appreciation.
A probe back to the breakout level after the initial climb would add more evidence to the signal. When trading at this level, key analysts are observing $LINK;s price trends because it is near this critical resistance level. If the breakout is true then it could actually mean that the trend could be on an upward swing to a higher level than what the bullish side of the market currently holds.
