Key Takeaways
- Chainlink (LINK) broke out from a descending wedge.
- The LINK price bounced at the $10.50 horizontal support.
- How long will the Chainlink price breakout continue?
Chainlink (LINK) has been on the rise since April 7, breaking out of a long-term descending wedge pattern.
This week brought even more positive news for the project. Chainlink announced the launch of Chainlink Lounge , a series offering behind-the-scenes looks at how it’s driving on-chain adoption.
Additionally, new integration partnerships were unveiled, with liquidity aggregator Li.Fi protocol and Stablecoin protocol Capmoney joining forces with Chainlink.
With both strong price action and upbeat sentiment, the outlook for Chainlink seems positive in the coming months.
LINK Price Breaks Out
On April 7, Chainlink (LINK) found strong support at the $10.50 horizontal level and the trendline of its descending wedge, sparking a significant bounce.
This wedge pattern had been in play since the cycle high of $30.94 in December 2024.
You’ll Want To See This
This week, LINK broke free from the wedge, using it as support for the upward move.
Before the breakout, a bullish divergence was seen in both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD), signaling a potential rally.
The wave count also backs up the breakout, with a completed five-wave decline (red) since the cycle high.
If this wave count holds, LINK may now be entering an A-B-C corrective structure, targeting the $17.90–$20.40 resistance zone.
LINK Rally Has Begun
The short-term six-hour wave count hints at an optimistic Chainlink price outlook.
According to the count, LINK has just started wave A in the aforementioned A-B-C corrective structure.
The sub-wave count (black) shows a completed leading diagonal for sub-wave one.
Sub-wave two might be over, leading to a significant expansion in sub-wave three.
However, it is possible that LINK will fall once more and complete sub-wave two near the 0.5 Fibonacci retracement support level at $11.70.
The rally is the most likely future outlook since LINK has fallen below the minor resistance at $12.70.
Nevertheless, new Chainlink price highs are likely in April and May.
Can LINK Outperform Bitcoin?
LINK is showing a bullish chart against Bitcoin (BTC), further strengthening the positive outlook.
Like the USDT pair, LINK is currently within a descending wedge pattern against BTC. While it hasn’t broken out yet, the pattern is nearing its end, suggesting that a decisive move could be on the horizon.
The wedge is considered a bullish formation, and the MACD has shown a bullish divergence, signaling that a breakout is increasingly likely.
If LINK does break out, not only could its price rise, but it may also outperform Bitcoin in the process.
Positive Months Ahead
The LINK price broke out from a descending wedge, indicating its correction is over.
The wave count suggests that the price has started a corrective rally that will take it between $17.90 and $20.40.
LINK is likely in the first portion of this increase, which could accelerate in the next few months.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Was this Article helpful?
