Chainlink Hits Critical Juncture: Bulls Target $40 Breakout — Here’s The Trend To Watch

Chainlink teeters at a pivotal threshold as momentum builds toward the $40 benchmark.

Market dynamics shift

Buyers pile pressure on resistance levels, betting big on an upside breakout. Technical indicators flash bullish signals across timeframes.

Traders eye key metrics

Volume spikes accompany recent price action, suggesting institutional interest hasn't faded despite crypto's usual volatility. The $40 target represents more than psychological resistance—it's a gateway to retesting all-time highs.

Oracle networks prove indispensable

Chainlink's real-world asset integrations keep demand fundamentals strong while other projects chase hypothetical use cases. The network actually generates revenue—a novel concept in crypto land.

Critical level holds the key

Break above current consolidation confirms bullish continuation. Failure here could trigger nasty liquidation cascades. Smart money watches these levels closer than their morning espresso.

Either Chainlink punches through or learns the hard way that in crypto, what goes up must sometimes come down—especially when traditional finance guys start shorting with borrowed tokens.

Chainlink Price At A Crossroads

In a TradingView post, crypto analyst CryptoPilot highlighted where the chainlink price currently is and the difficulties it is facing. It continues to trade below the $27.3 resistance, and with the latest rejection, is now moving toward the lower boundary of the ascending channel.

In this case, the altcoin risks a price collapse toward the $15-$17 level before its overextended move. It also aligns with the previous price performances when the price has been rejected in similar patterns, leading to a further downward move.

There is also the possibility that the price will continue to rally, and that is only if there is a sustained MOVE above the $27.3 resistance. Breaking this level with strong volume could trigger a rise toward the top of the channel. This channel top lies at the $45-$52 level, suggesting that the price could double if the bulls take control.

The major levels to watch now involve the resistance at $27.3, then with support lying low at $18-$19 before the channel support at $15-$17. Next is the resistance after breaking $27.3, which lies at $34, all of which lies within the ascending channel structure that began back in mid-2022.

Sellers Could Run Out Too

Another analyst who goes by irritated.eth on the X platform has mentioned that the current level where chainlink is sitting is historically a sell zone. This is seen in the fact that whenever the price pushes upward a bit, sells mount and this breaks the price back down again. Given this, for Chainlink’s bullish trend to continue, the sellers would have to be exhausted, and the analyst points out a factor that could hint at this.

First up is whether the price keeps rising to this sell zone, but sell volume shrinks. This would manifest in a steady uptrend, meaning that sellers are running out of tokens. Then, there is the lack of sharp dips in this sell zone. Finally, if the price is able to break out of this zone above $40 and retest it as support, it would mean the sell-offs are exhausted.