The hype around the popular decentralized oracle network Chainlink favors the ongoing token gains. The token has achieved significant attention from investors, rising to nearly $30 in December 2024. Though the price had dropped past that, the Chainlink price recovered quickly. Interestingly, a crypto analyst called its current performance within the breakout zone, gaining investor attention. Let’s discuss whether LINK could break out soon or not.
Chainlink Price Enters Accumulation Zone, Ideal For Rally
Popular crypto analyst Rose Premium signals that the Chainlink price has been consolidating below the key resistance level of $28 for nearly 13 days now. This zone acts as the accumulation zone, which sees strong buying activity. At present, LINK is trading at $26.03 and has been under consolidation for days. Still, the experts see it as the perfect buying opportunity, as the momentum is building for a complete uptrend.
According to Rose X post, the breakout zone sits right below the current accumulation zone, where the Fibonacci retracement and resistance-turned-support act as the bullish rally’s foundation. As a result, if the LINK price drops to the breakout level between $18-$20, this will act as another buying opportunity, as this could especially lead to a bullish rally.
Interestingly, many similar analysts have predicted a LINK price rally in January, increasing its credibility. Nevertheless, investors must watch the key level to make the right trading decisions.
Breakout & Price Target To Watch
The Chainlink price chart reveals the formation of the bullish triangle, which represents the bullish trajectory of the token. LINK currently trades at $26.03 and has surged 6% In the last 24 hours, confirming the breakout potential. With that, the key resistance levels to watch are $28.46, $34.11, and $39.48.
However, the token must cross the short resistance at $28.46 to enter the rally. Once this happened, this could support the breakout further, eventually pushing the LINK price to $40
What’s Next For Chainlink Price?
The LINK token has gained significant attention from the market for the past few weeks. Even at present, it has surged 6% with high investor interest, as the trading volume is up by 117%. Considering the positive outlook, analysts believe in a LINK price rally. More importantly, this could easily test $40 amid strong fundamental and increasing adoption, claims Rose.
Moreover, Rose highlighted that $28 is a key resistance and the accumulation zone below this. If the price dropped to $18-$20, this could lead to a breakout due to a bullish triangle pattern formation. However, due to the volatility and unpredictability of the cryptocurrency market, investors must do further research before taking any risks.
The post Analyst Highlights Chainlink Breakout Zone, Price to Hit $40 Next? appeared first on CoinGape.
