- Chainlink (LINK) is testing its 50-day moving average, a key level for trend reversals.
- RSI is climbing from oversold territory, signaling renewed buying interest.
- On-chain volume data shows accumulation near support, hinting at bullish intent.
- A breakout above the descending trendline could target the $18–$25 resistance zone.
Chainlink (LINK) is indicating a possible bullish breakout following a period of consolidation amounting to months, with prices at around $13.05. The price has been remaining north of a crucial support area between $11.50 and $12.00 yet has been regularly probing a falling resistance line that has existed since early 2025.
This long-standing pattern has formed a descending triangle, a setup typically considered bearish, but in certain contexts, especially following prolonged accumulation, it can signal a powerful breakout.
Also Read: Chainlink and Mastercard Partner Enabling 3 Billion Onchain Crypto Access
Chainlink Builds Pressure for Potential $25 Rally
Current activity on the markets shows bullish alignment. LINK is struggling to rise above its 50-day moving average (MA 50), a move preceding a trend reversal quite often. Meanwhile, the Relative Strength Index (RSI) is heading north from oversold, signaling increasing buying strength.
On-chain volume configurations and the volume profile of the area around the support area also indicate accumulation, adding strength to the bullish argument.
In case of a successful break of this descending resistance line, a jump can occur into the next important resistance area in the area of $18-$25. This region is bolstered by previous price highs and high-volume concentrations and is an important target area for bulls.
The technical setup, with support coming from a combination of volume and momentum oscillators, also suggests a potential change of direction of LINK’s trend. Investors and traders are intently looking at the breakout area, as a successful crossing of it can ignite a large rally.
As Chainlink is poised to break out of a falling triangle and recover upper levels, next few days may be critical for its price direction.
Also Read: Chainlink Wallets Hit Record 769K As Mastercard Partnership Changes the Game