- Chainlink broke out of a descending channel, retested the $15 resistance and then targets $23.
- On-chain metrics and liquidation data support continued bullish momentum for $LINK’s rally.
Chain link [LINK] has definitively broken out of the long-term declining channel, signaling a dramatic shift in momentum. This breakout comes after months of consolidation and bearish pressure, signaling a possible trend reversal.
At the time of writing, LINK was trading at $14.97, up 2.77% in the past 24 hours, with a market cap of $9.39 billion.
Trading volume increased by 86.04% to $981.98 million, reflecting increasing market participation. As the price retests the $15 resistance, $LINK looks poised for a rally towards the $23 target.
LINK retests key levels with strong bullish momentum
The retest of the $15 resistance level, a crucial price zone, adds further weight to $LINK’s bullish breakout. This level, now acting as a springboard, could propel the token to a 53% gain targeting the $23 resistance.
Historically, these types of breakouts have led to long-lasting rallies, and the $15 retest is considered a strong confirmation signal. Therefore, traders are keeping a close eye on whether $LINK can consolidate above this level in the coming sessions.
Source: TradingView
Momentum indicators provide additional bullish signals. The MACD shows a growing divergence between the MACD and signal lines, coupled with a rising histogram of green bars. This indicates that purchasing pressure is steadily increasing.
Additionally, a Fibonacci retracement from the previous lows to the recent breakout places the $23 level in a critical resistance zone, confirming its importance in the broader price trajectory.
Source: TradingView
LINK on-chain activity strengthens the positive outlook
On-chain metrics further support the bullish story. The number of active addresses increased by 1.24% over the past 24 hours, reflecting growing engagement with the Chainlink network.
Moreover, the number of transactions increased by 1.76% to 13,065 during the same period. This increase in activity indicates increased network usage, which is often accompanied by price increases.
Source: CryptoQuant
Liquidation data highlights bullish sentiment
Liquidation data shows that traders are predominantly betting on the price increase of $LINK. Long liquidations totaled $67.61K, significantly higher than short liquidations of $10.63K, indicating strong market confidence.
This imbalance suggests that traders expect further price appreciation, adding an extra layer of optimism to the current outlook.
Source: Coinglass
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In short, Chainlink’s breakout from the descending channel, along with the successful retest of $15, indicates that $LINK is well positioned to reach the $23 target.
With strong technical indicators, growing on-chain activity and bullish liquidation data, the rally appears sustainable. Therefore, $LINK is likely to reach $23 in the near term, provided it consolidates above $15.
Credit : ambcrypto.com
