Key Insights:
- Chainlink formed a falling wedge, suggesting an upside breakout toward $16.
- Over 78M LINK holders are at a loss, with $12.28 as strong support.
- LINK’s daily chart remains indecisive, with $13.20 as the breakout trigger.
Chainlink price prediction trends suggest that LINK is poised for a potential breakout after reclaiming support at $12. With bullish chart patterns forming and key resistance levels identified, the token’s price structure showed possible signs of reversal.
Analysts Ali Martinez and CRYPTOWZRD provided detailed insights. They cited technical patterns and on-chain data supporting a critical setup for LINK.
Chainlink Price Prediction: LINK Forms Falling Wedge Pattern Above Support
Technical analyst CRYPTOWZRD identified a falling wedge pattern on the Chainlink daily chart. This bullish reversal setup often emerges after extended downtrends and typically precedes upward breakouts.
The top altcoin price formed a pattern of lower highs and lower lows. However, the narrowing price range hinted at weakening bearish momentum. According to CRYPTOWZRD, LINK price held firm above its lower trend line, testing the $12.50 level.
This support level aligned with previous reaction zones, where buyers stepped in to absorb selling pressure. As long as this level held, the wedge structure remained valid and suggested building bullish momentum.
CRYPTOWZRD’s chart suggested that Chainlink price prediction could turn bullish if it breaks above the upper wedge boundary. In this scenario, the price might initially target $16.00.
He further noted that a breakout could extend toward $26.00 if market conditions remain favorable. However, LINK’s daily candles remained indecisive, showing that a decisive breakout had not yet occurred.
Analyst Highlighted Resistance at $14
Furthermore, Ali Martinez pointed to $12.28 as a crucial support zone for LINK price. CRYPTOWZRD’s Chainlink price prediction emphasized $14.58 as a vital resistance level.
Breaching this mark would be essential to validate a bullish reversal for the altcoin. This level has repeatedly rejected upward moves recently, making it a significant barrier.
Martinez noted that LINK price stabilized after reclaiming support, creating a foundation for possible upward movement. If bulls drive the price above $14.58, it could confirm a breakout and initiate a new upward trend.
Improving momentum indicators would likely reinforce this movement, signaling stronger bullish momentum. Additionally, Martinez cited $13.20 as a short-term breakout trigger.
A close above this level would signal renewed bullish strength and serve as confirmation for traders looking for upward continuation. His analysis showed that Chainlink price prediction structure remained neutral. However, a shift in price action could soon tip the balance.
On-Chain Data Showed Majority of LINK Holders are at Loss
Ali Martinez also shared insights from IntoTheBlock’s “In/Out of the Money Around Price” model. At the time of writing, Chainlink price was trading near $12.81.
Despite a modest 0.86% gain over the past week, LINK recorded a 30.99% drop over the past month. This impacted the investor’s profitability.
The analysis revealed that 53.06% of addresses were “out of the money.” These addresses held 78.24 million LINK tokens at prices higher than the current level.
Meanwhile, 44.63% of addresses, representing 65.81 million LINK tokens, were profitable. This distribution revealed that more holders faced losses, increasing the pressure on the Chainlink price to break above resistance zones.
The two essential support levels were located at $12.47 and $14.19. However, critical support levels were identified around 12.47 and 14.19. These levels correlated with previous price reactions, underlining the significance of psychological levels as support and resistance indicators.
LINK Price Structure Remained Indecisive
The daily chart for LINK remained indecisive, according to CRYPTOWZRD, with price action confined within a tight range. Lack of directional movement suggested the market was undecided. However, patterns on the chart indicated the beginning of a bullish movement.
Nevertheless, trading volume remained relatively low but steady during the month, with LINK between $12.28 and $14.58.
As for the targets, CRYPTOWZRD and Martinez pointed at $13.20, which may lead to the altcoin rally. However, according to Chainlink price prediction, LINK must move past the $14.58 point to confirm a breakout.