Chainlink Bulls Rejoice! This Breakout Could Trigger a Major Rally

Last week, Chainlink delivered some positive updates that helped the token hold its ground at a critical long-term support level. This prevented what could have been a bearish breakdown, boosting confidence across the crypto community.

 New Assets and a Key Integration Boost Sentiment

One of the major highlights was Chainlink’s announcement of support for 22 new assets and seven new integrations with its data services. Among these, the integration with Pi Network stood out and drew significant attention.

This particular partnership helped fuel the upward momentum in both LINK and Pi Network’s token prices, giving traders a reason to stay bullish.

LINK Holds Strong at Key Support Level

Analyzing the weekly time frame, LINK has been following an ascending support trend line since May 2023. Last week, the token formed a bullish candlestick right at that trend line, signaling a potential trend reversal.

Failed breakdowns at such critical levels are often seen as positive signs, hinting that the price may be preparing for a move higher.

However, some caution remains. Both the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are still pointing downward. This means that while the price held up well last week, the long-term trend is not clearly bullish just yet.

Breakout Confirms Strength in LINK’s Price

Earlier this month, analysts predicted that LINK had completed the fifth and final wave of a downward movement. This aligned with support near the $10.50 horizontal level and the wedge’s lower boundary.

Since then, LINK’s price has broken out of its descending wedge pattern—a move that is typically seen as a bullish signal.

Adding weight to this breakout, both the RSI and MACD showed bullish divergence before the rally began, suggesting that the shift in momentum is backed by improving technical indicators.

Currently Chainlink Price trading at $12.74 as per Coinpedia Market data.

For a more detailed Chainlink Price Prediction 2030, check out our full analysis!

What's Next for LINK?

The breakout and price movement indicate that LINK might have finished its short-term correction. If that’s the case, it could now be heading into a stronger uptrend over the next few months.

Based on the Fibonacci retracement levels, the next key resistance to watch is $17.92. This is the 0.382 retracement level and could act as a major target if LINK continues its upward trend.

Can LINK Hold the Momentum?

Chainlink’s recent updates, including the Pi Network integration and support for more assets, have clearly sparked renewed interest. Technically, LINK has avoided a major breakdown and is now showing signs of strength.

If the breakout is confirmed in the coming days, investors could see LINK push toward the $17.90 resistance and possibly higher. While some indicators remain mixed, the overall outlook is cautiously optimistic for the rest of the month.