- Chainlink (LINK) has broken out of a 238-day descending parallel channel, supported by bullish technical indicators and wave count analysis, signaling a potential price surge to $26.14—a 100% increase from current levels.
- Recent adoption news, including integration with World Liberty Financial, further bolsters LINK’s upward momentum.
Chainlink (LINK) has made headlines after breaking out from a 238-day descending parallel channel, marking a significant shift in its price trajectory. With bullish technical indicators and a promising wave count analysis, investors are speculating on whether the cryptocurrency could see a 100% price increase in the near future.
Breaking the Pattern: A Bullish Signal
Last week, Chainlink recorded a 30% price increase, forming a bullish engulfing candlestick and breaking out of a long-term descending parallel channel. This channel, which had persisted since early 2023, acted as a barrier to upward movement. LINK’s breakout above the critical $13 horizontal resistance zone further solidifies its bullish momentum.
The next key resistance level lies at $18.30, just below the yearly high. If this level is breached, LINK could set its sights on the $26.14 target, representing a potential 100% increase from current levels.
Technical Indicators Validate the Breakout
Chainlink’s recent breakout is supported by strong technical indicators:
- RSI Momentum: The Relative Strength Index (RSI) broke above its bearish trendline and crossed the 50 level, signaling a shift to bullish momentum.
- MACD Crossover: The Moving Average Convergence Divergence (MACD) displayed a bullish crossover, indicating growing buying pressure, even though the MACD remains below the positive zone.
These indicators suggest that Chainlink’s upward trend is likely to continue.
Wave Count Analysis: The Road to $26.14
The wave count on Chainlink’s weekly chart points to the start of a new five-wave upward movement. The previous price action within the channel appears to be a completed corrective A-B-C structure. This implies that LINK is now in the early stages of a new bullish wave.
In the short term, LINK recently completed an A-B-C correction, which aligns with Fibonacci retracement levels, indicating the correction is likely over. This sets the stage for the next leg of the upward trend, potentially targeting $26.14.
What’s Driving Chainlink’s Momentum?
Beyond technicals, Chainlink’s recent adoption news has fueled interest. World Liberty Financial (WLFI) announced it would integrate Chainlink’s infrastructure to secure its lending market, boosting LINK’s reputation in the financial technology space. Additionally, the launch of a new project called LINK on the Solana blockchain has sparked divided opinions but kept Chainlink in the spotlight.
Conclusion: The Future Looks Bright
With a bullish technical setup and growing adoption, Chainlink’s price could be poised for significant growth. While short-term corrections may occur, the long-term outlook suggests that LINK could reach the $26.14 target, doubling its current value.
