Chainlink (LINK) Set For Major Breakout: Will It Reach $26.50?
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- Chainlink (LINK) is testing the upper trendline of a falling wedge pattern with rising volume, signaling a possible breakout.
- A breakout from the wedge could trigger a parabolic price surge, with targets set at $15.40, $17.50, $20.00, $23.80, and $26.50.
- Traders are closely monitoring volume, as a breakout with high volume could ignite a bullish trend for Chainlink.
Chainlink (LINK) is in a bull run and is currently at the upper trendline of the falling wedge pattern on the daily chart. Volume is continuing to rise, which may signal that the breakout will soon happen. If this is the case, it will imply that an appreciation of the price may be imminent in the near future.
Falling Wedge Signals Bullish Trend
The falling wedge pattern is normally interpreted with a bullish outlook. This gives prominence to the fact that it usually marks a change from a bearish trend marked by a price rise after piercing the barrier. Currently, LINK’s price has been range bound in this wedge, but the increasing volume suggests that the trend could be changing shortly. The traders are now anticipating the breakout happening over the course of the trading session.
Source: X
Such a breakout will open the way to a parabolic move up following the upper trendline. The analyst has price targets set at $15.40, $17.50, $20.00, $23.80, and $26.50. If the price continues with the breakout, these levels are considered to be significant resistance levels. However, for the move to be confirmed, the price needs to go back to the breakout point.
Chainlink Volume Focus
Therefore, the volume situation should become an essential focus in the following days. Experienced traders also expect that if there is a breakout with high volume, then a bullish run for the Chainlink price might start. There are indications, which traders will observe before they enter into long positions, to be confirmed through the highest point the price has reached to the breakout zone. Failure to break the resistance level can also result in further consolidation or reversal.
At the moment, Chainlink is still trading inside the wedge formation, and the price is almost at the significant level of resistance. The market is anticipating a clear signal from the investors. Such a breakout may have a stronger effect on interest from the retail and institutional investors and a push to an even higher price.
Nevertheless, having found themselves in a promising and growing industry, the situation can turn around within a moment in the crypto market. As of press time, LINK is trading at $13.15, showing a 1.43% increase over the past day.
Source: TradingView
The upcoming days will be quite crucial for the development of Chainlink. This setup indicated that a breakout with high volume may lead to a further movement in the specified direction. However, one should be aware that market may have unexpected reactions. If the breakout surges as expected, LINK’s future is surrounded by some important price marks that may bring possible gains.
