Chainlink (LINK) Poised For 17% Breakout: Can Bulls Shatter Resistance?

The cryptocurrency market is hinting at a resurgence, with Chainlink (LINK) leading the charge. LINK surged an impressive 16.23% today, breaking free from a key support level of $12.63 and reaching $14.68. This upswing reflects a renewed sense of optimism among investors, potentially paving the way for further gains.

Market analyst CryptoYapper recently offered a bullish outlook for Chainlink, attributing its strength to a solid rebound from a well-established support zone. He pinpointed the $13 support level as a critical factor, highlighting its consistent role in bolstering trader confidence.

Currently hovering around $14.58, LINK exhibits a clear upward trajectory. The price action suggests a target on the first major resistance level at $17. This level has historically impacted LINK’s price direction, making it a pivotal point to watch.

Yapper believes LINK is well-positioned to challenge the $17 resistance. A decisive break above this level could trigger a fresh wave of buying pressure and ignite a new bullish trend for LINK. This optimism stems from the formation of higher lows and consistent pressure on the resistance, indicating that buyers are gaining control.

Institutional investors appear to be placing significant bets on Chainlink’s future. On-chain data reveals that large investors and institutions have been accumulating LINK at a noteworthy pace. In just the last week, a combined total of 2.08 million LINK tokens, valued at roughly $30.28 million, were withdrawn from Binance by 54 new wallets. Notably, a substantial withdrawal of 139,111 LINK (equivalent to $2.03 million) hints at strategic maneuvering by major investors who anticipate positive market trends in the near future.

Furthermore, data from Santiment shows a surge in Chainlink’s development activity, placing it firmly in the second position, closely trailing Hedera. This ranking signifies a substantial development push over the past 30 days, underlining Chainlink’s growing influence and continuous innovation within the cryptocurrency space.

While LINK started the day at $14.40, reflecting a 1.25% rise from the opening price, maintaining a position above $13 is crucial for a potential climb toward the initial major resistance level of $15.05. Successfully breaching this level could propel LINK toward the next resistance level at $17.79, followed by the third resistance level at $18.79. These levels represent potential zones where LINK might encounter selling pressure or experience price hikes.

On the downside, immediate support lies at $13.16, with a more substantial support level at $12.94. The current Relative Strength Index (RSI) reading of 46.95 suggests neutral momentum, indicating a period of consolidation or sideways trading for LINK in the absence of a significant market mover.