Analysts are closely monitoring Chainlink (LINK), which appears to be on the verge of a significant technical breakout. According to market expert Bubbafox, a prominent cup-and-handle pattern is forming on the daily chart, characterized by a long, rounded base followed by a short handle near the critical $25 resistance level. If this breakout is confirmed by rising trading volume, analysts suggest the asset could rally towards the $30 mark.
Currently, LINK is trading at approximately $24.03, reflecting a 2.35% increase over the past 24 hours. The cryptocurrency boasts a market capitalization of $16.28 billion and a daily trading volume of $1.23 billion. Support has held firm in the $23.0–$23.5 range, while a strong close above $23.95–$24.89 could signal further upward movement. The role of sustained volume is vital in affirming the breakout and supporting the potential bullish trend.
Bubbafox emphasizes that breaking through the $25 resistance is essential for validating the cup-and-handle pattern. A successful close above this level could pave the way for additional gains, possibly pulling in traders eager for upward momentum. The long-term descending resistance line from previous highs aligns with this zone, adding to its significance.
The current structure of Chainlink’s chart reveals robust technical support, with the 200-day moving average and an ascending mid-term trendline reinforcing bullish sentiment. Trading volumes have remained consistent, particularly around the support zone of $21 to $22. Maintaining this area is crucial for the continuation of the cup-and-handle setup, and any decline below it could hinder its upward trajectory.
Additional insights from analyst ShardiB2 reveal short-term resistance at the $23.95 level, where LINK has faced multiple challenges. Despite some selling pressure, the support around $23.30 has remained resilient. A close below this support level could prompt a deeper pullback, while a rebound may lead to a retest of both $23.95 and the upper threshold of $24.89.
With regard to momentum indicators, the Relative Strength Index (RSI) on hourly charts has fluctuated between 41 and 58, indicating neither oversold nor overbought conditions. A decisive hourly close above $23.95 is critical to restoring short-term bullish sentiment.
Overall, Chainlink’s recent market performance has been notable, with the asset rising to $24 after fluctuating between $23.1 and $23.5 in the previous session. The breakout above $24 coincided with increased trading activity, suggesting healthy market participation. The next psychological barrier is set at $24.50, while the intraday low of $23.0 will be closely monitored for potential retests. If buying momentum persists, all eyes will be on the $25 level and beyond, as traders look for confirmation of a larger rally toward the important $30 benchmark.
