Chainlink (LINK) Nears Critical $20 Breakout—Can It Shatter Resistance?
LINK bulls are charging as the oracle network’s token flirts with a decisive $20 resistance level. Market watchers are split: technicals hint at bullish momentum, but skeptics warn of overleveraged crypto traders treating price levels like horoscopes.
Why $20 matters: A clean breakout could trigger algorithmic buying and fresh FOMO—just don’t expect Wall Street analysts to care until after the fact.
The bottom line: Chainlink’s real-world adoption keeps growing, but in crypto-land, price action still trumps utility. As always, trade the chart—not the narrative.
- Chainlink’s RSI and MACD show neutral momentum, indicating a balance between buyers and sellers.
- A long-term ascending triangle pattern hints at a potential breakout, statistically favoring the upside.
- LINK price closely hugs its 20EMA and 50EMA, signaling a build-up toward possible explosive movement.
Market sentiment around chainlink (LINK) goes into June 2025 stuck technically. Bulbasaur.eth, a crypto trader and on-chain chartist, provided an in-depth analysis of the LINK/USD movement where neutral readings were found on the crucial indicators Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).
In January 2021, the RSI hit a peak of 83, indicating overbought conditions and subsequent correction. Currently oscillating around 50 levels, the index states that Chainlink is not in an overbought or oversold situation and is at equilibrium.
In the same vein, MACD’s histogram is getting flattened, meaning a pause in directional momentum. As Bulbasaur.eth put it, this is almost a “moment of peace” before things could start to explode again with big movements either way.
At the structural level, LINK’s multi-month consolidation has shaped what appears to be an ascending triangle, a bullish continuation pattern that breaks upward 68% of the time, according to historical chart pattern statistics cited from Thomas Bulkowski’s studies.
Technical Setup Shows Early Signs of Breakout Pressure
The current setup puts the price action of Chainlink trapped between the 20-day Exponential Moving Average (EMA), which it is unable to regain, and the 50-day EMA, which continues to act as firm support. The two averages are now converging, an established indicator of forthcoming volatility.
This tightening squeeze follows a brief price flirtation with breakout levels in January 2025, reminiscent of LINK’s price behavior in 2021 when it approached resistance before a temporary rally. Although LINK has not yet committed to a breakout, Bulbasaur.eth notes that staying above the 50EMA keeps the bullish thesis intact.
More importantly, the community took a wary stance with recent cross-chain conflicts and competing narratives like the emergence of Wormhole and PYTH Network. Still, the “LINK Marines” don’t give up, waiting for the technicals to signal an uptrend again.
Ascending Triangle Holds the Key to LINK’s Next Move
As long as LINK remains within the confines of the ascending triangle and above the 50EMA support, it will continue to have bullish potential. In case of an upward breakout, price targets could be set towards previous highs seen in early 2021; however, failure to hold trendline support WOULD likely flip the setup into a bearish trap.
The situation calls for weekly or monthly monitoring, as per Bulbasaur.eth, which would allow the real-time verification of trend development. Sentiment is currently muted, so even small catalysts could swing the pendulum and perhaps trigger the long-anticipated Chainlink tsunami.
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