The price of Chainlink has been stuck in a prolonged accumulation range for more than a year, frequently testing both support and resistance levels without confirming a clear trend. This extended period of consolidation has led to concerns that the DeFi-focused token may continue trading sideways in the near future. However, recent movements in the market suggest that bullish momentum might be beginning to surface.
Chainlink (LINK) is now nearing a crucial resistance zone, and a successful breakout from its current accumulation range could potentially lead to a significant upside of around 50% in the upcoming weeks. The immediate focus now lies on whether LINK can maintain support above the key psychological level of $10. Securing this range in the near term could bolster market confidence and set the groundwork for a broader rally toward higher resistance levels.
An analysis of the weekly price chart highlights that LINK continues to operate within a long-standing accumulation phase, with prices confined between the $5.5 and $9.5 range. At present, LINK is trading near the $9 mark, historically recognized as a pivotal resistance level within this accumulation structure. The ongoing rejections from higher price points indicate that the market remains in a consolidation phase where both buyers and sellers are vying for control.
From a momentum analysis perspective, the weekly Relative Strength Index (RSI) has recently approached a lower threshold for the first time since June 2022. Importantly, the indicator is starting to show a bullish divergence, where prices form similar lows, while the RSI records higher lows. This pattern is often interpreted as a sign of weakening selling pressure and may hint at a gradual trend reversal.
Meanwhile, the Chaikin Money Flow (CMF) is trending downward, indicating a decline in capital inflows into the asset. Despite this, the overall outlook for Chainlink suggests that it remains entrenched in a prolonged accumulation phase, with prices expected to continue oscillating between $5.5 and $9.5 in the near term. The $8 level is currently viewed as an immediate support target.
If the price of LINK manages to reclaim the $9.5 level, potential targets may arise around $12, followed by ranges from $15 to $16 in the mid-term. On the other hand, a decline below $8 could drive the price toward $6.5, with the $5.5 area serving as significant long-term support within the broader accumulation structure.
