Chainlink Triggers Rare Buy Signal – Is a Rally Imminent?
Chainlink’s latest technical indicator flashes green—just as crypto traders start eyeing the next big breakout. The oracle network’s token shows bullish momentum, but will it dodge the ’buy the rumor, sell the news’ curse that plagues altcoins?
Key levels to watch: If LINK holds above $18.50, the path clears for a retest of its 2024 highs. Cue the usual suspects: leveraged longs piling in, hedge funds pretending they ’always believed in Web3 infrastructure,’ and your cousin texting you for trading advice.
One cynical truth? These signals work until they don’t—usually right after your exchange deposit clears.
Chainlink Eyes Breakout as Momentum Builds
Chainlink has been range-bound between $10 and $16 since March, consolidating after a volatile start to the year. Despite the sideways action, market participants are increasingly focused on the potential for a breakout as LINK presses against its key resistance level around $16. A sustained move above this barrier could trigger a strong upside move, especially if accompanied by a broader altcoin rally.
The current setup comes amid high-risk macroeconomic conditions. Global tensions continue to rise, particularly between the US and China, where escalating tariffs and trade disputes have sparked fears of a global recession. Such a backdrop adds a layer of caution to any bullish outlook, as risk assets remain vulnerable to sudden shifts in investor sentiment.
Nevertheless, optimism for Chainlink has grown after Ali Martínez pointed out that the SuperTrend indicator has flashed a buy signal on LINK’s daily chart. This technical tool is often used to detect early trend reversals or sustained shifts in market direction. When it appears after a prolonged consolidation, as it has now, it can signal that bullish momentum is about to accelerate.
If bulls manage to reclaim and hold levels above $16, it could confirm a trend change and potentially send LINK surging toward new 2024 highs. Still, until the price breakouts, the range remains in play—and so does the risk of another rejection.
LINK Price Analysis: Key Levels
Chainlink is currently trading at $15.10, gradually climbing toward the critical $16 resistance level. This zone has acted as a ceiling throughout April and May, and bulls now face a pivotal test. Reclaiming and holding above $16 would not only break the multi-week range but also set the stage for a possible breakout if momentum continues to build.
The technical picture highlights the importance of the 200-day moving average (MA) and exponential moving average (EMA), both clustered in the $16–$17 range. These trend indicators have served as dynamic resistance in recent months, and a clean push above them could confirm a bullish reversal and open the path toward higher targets.
However, the structure remains fragile, and failure to maintain strength could put LINK at risk of a deeper pullback. If the $14 support level breaks, selling pressure may accelerate, potentially dragging the price toward lower demand zones around $12 or even $10.
As the broader market heats up and speculative appetite returns, LINK’s positioning around this key resistance will likely determine its short-term trend. A decisive move in either direction could shape the price action heading into the next few weeks.
Featured image from Dall-E, chart from TradingView
