Chainlink (LINK) Breaks Out From Resistance — Pattern Points to 80% Price Increase

Key Takeaways

• Chainlink (LINK) broke out from a long-term channel.
• The price trades nearly 60% under its yearly high.
• Can LINK build on its breakout and reach new highs?

The Chainlink price has increased gradually since August. On Nov. 4, the price created a higher low and accelerated its upward movement, culminating with a 158-day high on Nov.18. Besides the appreciation, the LINK increase stands out since it caused a breakout from a long-term horizontal and diagonal resistance level.

There is only one more resistance left until the LINK yearly high of $22.87. Let’s look at the LINK price movement to see if it can maintain its momentum and reach new highs.

LINK Price Breaks Out

The weekly time frame chart shows that LINK broke out from a long-term descending parallel channel at the beginning of November by creating a bullish engulfing weekly candlestick (white icon). During the breakout, LINK also moved above the $13 horizontal resistance area, which has existed since 2023.

While there is a minor resistance at $18.80, the breakout paved the way for a new LINK yearly high. This week, the LINK price reached a high of $16, the highest since June.

Technical indicators support the increase. The Relative Strength Index (RSI) is increasing and above 50, while the Moving Average Convergence/Divergence (MACD) has made a bullish cross and is almost at 50.

Indicator readings are similar to those in November 2023, when the LINK price began a 210% price increase that led to the yearly high.

Positive Chainlink News

There has been a barrage of positive Chainlink news this week. Chainlink announced that Brazil’s central bank has selected the Chainlink standard  for its CBDC project. The same day, Astar Network adopted  the Chainlink standard to support the development of its cross-chain applications.

Finally, the JOJO exchange announced  it will integrate the Chainlink standard to improve its perpetual trading platform.

Because of the news and the price action, the LINK sentiment on X is extremely bullish. Upsidedowndata uses a heat map to show that the LINK price movement shares characteristics with that before major runs in the past.

NicuCrypto outlined  a long-term symmetrical triangle, suggesting that its breakout will lead to a price of $200, while SatoshiFlipper is bullish in the short-term , predicting an increase toward $22. Taking that into account, let’s analyze the price action and see what the next LINK target is.

LINK to $37

The weekly time frame wave count verifies the breakout, suggesting the upward movement will continue. The most likely count suggests that LINK started a new five-wave upward movement in August (white icon).

It is still unclear if the move is part of a longer-term wave C or wave three, but will likely have the same length as the previous one either way. If this is the case, LINK will reach a high of $37.60.

The short-term wave count is even more bullish, showing a series of 1-2/1-2/1-2 waves, which predict the LINK price increase will become parabolic soon. In this count, the sub-wave and minor sub-wave counts are shown in black and yellow, respectively.

This count will be invalid if LINK closes below the $12 horizontal support area. While this will not invalidate the long-term upward movement, it will likely lead to a more gradual increase.

Sharp Rise Imminent

Since LINK broke out from its long-term correction, it faces only one more resistance until the yearly high.

The price action and indicator readings are positive and the wave count gives a target of $37.60.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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