Chainlink (LINK) Breaks Out of Falling Wedge, Targets $15.40

Chainlink (LINK) has recently shown signs of renewed strength after retesting a crucial support level, indicating that bullish momentum may be building for the next phase of its upward movement. The recent bounce from this key support area, which previously acted as a barrier, suggests that the level has now become a strong foundation for the cryptocurrency. This move reinforces the support's strength and sets the stage for a potential upside run. As LINK stabilizes above this key level, attention is now focused on the next resistance zones that could define its near-term direction. With momentum gradually rebuilding, the stage might be set for a breakout that could attract broader market attention.

According to a recent post by Jimmy X, Chainlink has broken out of a falling wedge pattern on the daily chart, a formation often considered a bullish reversal signal. This technical development hints at a possible shift in momentum after a period of downward consolidation. Jimmy noted that LINK is currently testing the upper trendline resistance of the wedge, with trading volume steadily increasing. This is a strong sign that buyers are stepping in with conviction. Rising volume alongside a breakout typically reinforces the validity of the move, suggesting that this isn’t just a short-lived spike but possibly the beginning of a more sustained upward trend.

Jimmy further emphasizes that a confirmed breakout followed by a successful retest of the previous resistance as support could trigger a parabolic move for Chainlink. This bullish setup, often seen as a launchpad for accelerated rallies, places LINK on track to target multiple upside levels. Key resistance points include $15.40 and $17.50, which have historically served as barriers during past price surges. Beyond these are the $20.00, $23.80, and $26.50 price levels. With technical indicators aligning and sentiment shifting, a sustained move above the breakout zone may set the stage for an extended rally.

While Chainlink’s recent retest of support shows bullish promise, it’s crucial to acknowledge the downside risks in case momentum weakens. If the price fails to maintain its current structure, the first level of support lies around $12.50. This level has previously served as a strong demand area, and a breakdown below it might signal the start of a deeper correction. Further down, the $11.10 level becomes the next critical point. This area marks a prior consolidation zone and aligns with the lower trendline of the broader ascending channel, making it a vital structure for bulls to defend. A breach below this could open the door for a retest of the psychological $9.28 level, where the market may once again attempt to establish a firm base.