Chainlink (LINK) Flips Key Rejection Zone Into Support — Ready to Retest $20

Key Takeaways

• After multiple failed attempts since January, Chainlink finally broke above its falling channel on April 16.
• On-chain data shows over $120 million LINK moved off exchanges — a bullish sign suggesting accumulation.
• The CMF and BBP support the bullish trend, with analysis showing that LINK’s price could move above $20.

After weeks of struggling to overcome key resistance levels, Chainlink (LINK) broke free from its downtrend last Wednesday. This breakout seems to be a potential game-changer for Chainlink’s price action.

In line with this trend, several technical indicators now align with the possibility of a sustained rally.

But how high can LINK go from here? CCN breaks it down in this analysis.

Chainlink Shakes Off Bears

On the daily chart, Chainlink’s price has failed to break above the falling channel on three occasions since the year began. The first time was on Jan. 22, when LINK attempted to climb to $30 but faced a roadblock near $26.85.

By Feb. 1, a similar thing happened, but bears pushed it back at the $25 resistance. This led to an extended downturn till bulls tried to drive the altcoin to $20 in late March but failed again.

But on April 16, something changed in this trend as Chainlink’s price surged past the overhead resistance at $12.40. This breakout suggests that the token might have ended the prolonged correction it was stuck in, and a sustained rally could be next.

A look at other indicators also revealed that LINK could hit a higher value. For instance, the Money Flow Index (MFI), which measures buying and selling pressure, has risen to 78.15, indicating strong bullish dominance.

Also, the Relative Strength Index (RSI), an indicator measuring momentum, has continued to rise. Should these indicators continue to hit high values, then LINK could see a quick run in the $15 direction.

Bullish Accumulation Underway

From an on-chain standpoint, IntoTheBlock data shows that LINK exchange outflows over the past month have exceeded $120 million.

Exchange outflows track the amount of crypto being moved from centralized platforms into private wallets or cold storage. When assets sit on exchanges, they are easier to dump.

But when pulled off, it signals reduced immediate supply — a setup that historically precedes price rallies, especially when demand picks up.

For LINK, the steady outflow suggests bullish accumulation is underway. If this trend continues, Chainlink’s price could extend its upward move in the short to mid-term.

LINK Price Analysis: Reversal In Motion

Looking at the technical perspective again, CCN observed that the Bull Bear Power (BBP) reading has flashed consistent green histogram bars. This indicates rising buying pressure as bears seem to have taken the back seat.

Likewise, the Chaikin Money Flow (CMF) reading failed to drop below the zero signal line. At 0.11, the CMF validates the bullish trend.

The CMF reading might continue to increase. If this is the case, Chainlink’s next move could be a run to $16.83 at the 0.618 golden ratio.

Once LINK retests this region, it could give way to an extended surge above the $20 mark.

On the flip side, if selling pressure increases, the BBP and CMF ratings might drop, leading LINK below the $10 mark.