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Chainlink price broke out of a downward consolidation pattern after correcting from the December high of $26.
If the resistance line around $22 is broken, it could indicate a potential continuation of the upward momentum.
Weeks of falling volatility and lower highs, after which a triangle pattern was formed. With the breakout point, LINK was trading at $22.14, up 1.14%.
The market highlighted a projected target of up to 48%, pointing towards the $33 range. The predicted price increase could suggest renewed interest in Chainlink as a key DeFi asset.
A rise in the stablecoin current reserve of $45 billion would support buying pressure and potential bullish sentiment.
Chain link price faced resistance near $27 and corrected to $20, retesting support levels. The current structure suggests that $30+ could become achievable if the momentum holds.
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Strong volume could confirm a move to higher targets. Chainlink remains a solid project as shown by its historical data.
If the momentum holds, LINK would attract further interest, potentially challenging its previous highs between $30-35.
LINK Potential puncture of cup and handle
LINK also rallied through a huge cup and handle pattern, breaking through resistance at $18 and retesting before moving higher.
The breakout aligned with the Elliott wave theory, triggering wave 3, which signaled a strong bullish momentum. Chianlink price exceeded $22 with projections pointing to ATH in Q1 2025.
The cup ranged from $5 to $35 between 2020 and 2023, followed by a range that formed between $18 and $11, a breakout of the set was confirmed above $18.
A stranded trend line for multi-year resistance has been decisively broken, signaling potential long-term growth.
Elliott wave analysis suggests a five-wave structure. Wave 1 peaked near $35 and wave 2 corrected to $11. Wave 3 could extend above $100.
Retesting the handle reinforced bullish confidence. If sustained, LINK would likely reach significant price milestones, reaching a new ATH in early 2025.
Chainlink Price Short-term risk
LINK’s short-term risk has completely reversed after the November-December rally, matching levels last seen before the price surge.
The market illustrated significant volatility during 2021 to 2022, with the blue indicator reflecting frequent spikes and dips in short-term risk.
Short-term risk fell sharply by the end of 2024, indicating a reduction in speculative pressure and a reset of market conditions.
Its value zone remains attractive, but a further move could improve accumulation opportunities for long-term owners.
Future sparks, such as broader market movements or positive fundamentals, could propel LINK higher. The price of the chain link showed resilience during the risk reset, strengthening it for a new up phase.
LINK Mood analysis
Sentiment analysis for LINK revealed a moderately bullish forecast from both audience sentiment and smart money metrics.
The audience sentiment meter recorded a value of 0.23, indicating a slight positive bias among retail participants.
The same market conditions with smart money sentiment showing a stronger upward trend, clocking in at 0.39.
This alignment could signal potential upside momentum in LINK’s price, especially if external catalysts or market trends support this sentiment.
Despite being in the lower bullish range, the positive sentiment alignment predicted the market’s growing willingness to move up.
The bullish rise was probably driven by improved market conditions. If this sentiment strengthens, Chainlink price could retest resistance levels, potentially surpassing $10.
However, any changes in broader market sentiment could temper this optimistic forecast. But both metrics underscore cautious optimism for LINK in the short term.
