ChainLink (LINK) Near Critical $28 Resistance After 639-Day Consolidation

ChainLink (LINK) has spent 639 consecutive days consolidating below the $28 level within an ascending channel, a period marked by consistent higher lows and a slowly rising 50 EMA, signaling market strength [1]. This consolidation, which has taken place below a major supply zone between $24 and $28, appears to be nearing a critical juncture as prices approach overhead resistance [1]. At the time of writing, LINK was trading at $25 with a market capitalization of $17.01 billion and a 24-hour trading volume of $2.32 billion [1].

The extended consolidation phase has been observed as a period of re-accumulation, with traders and investors waiting for a catalyst to break the current equilibrium [1]. Technical analysts, including Alex Clay via X, have highlighted the significance of this pattern, noting that the recent formation of higher lows and the upward trend in the 50 EMA suggest that market participants are positioning for a potential breakout [1]. Recent price action saw LINK testing the lower channel band before regaining momentum toward $21.48 [1].

A clean breakout above $30 could open the door for further gains toward $32 and $52 in the long term [1]. Such a move would be supported by recent on-chain activity, which saw over 9,813 unique wallets transacting in one day and 9,625 new wallet creations the following day—marking a peak in address activity for the year [1]. This surge in wallet engagement aligns with broader growth in ChainLink’s network, including the introduction of Data Streams, which now provide real-time equity and ETF feeds for major assets like AAPL, QQQ, and NVDA [1]. Additionally, the launch of the Chainlink Reserve aims to enhance token utility and support long-term network stability [1].

Fundamental developments have also played a role in building optimism. The recent weekly breakout above a Gann arc, as noted by Cantonese Cat, represents a positive structural signal for the market outlook [1]. While resistance remains near key price levels, the breakout confirms a shift in momentum and reinforces the likelihood of a sustained upward move.

Market participants are advised to closely monitor volume and price levels as LINK approaches critical resistance. A successful breakout would likely be accompanied by a surge in buying pressure and confirmation through elevated trading volume [1]. Conversely, a failure to break above $28 could prolong the consolidation phase or lead to a retracement toward lower levels [1]. Given the duration of the consolidation and the structural setup, the next few weeks are expected to be pivotal in determining the immediate direction of ChainLink’s price action [1].

Source: [1] Active Topics on Bitcointalk.org in the Past 7 Days - Loyce Club (https://loyce.club/active/topics7d.html)