Chainlink bulls have the edge after a decisive breakout.
Share
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.
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.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
