Chainlink's Potential Breakout: Could LINK Soar to $20?

Jonathan Stoker Feb 01, 2024, 23:50pm 96 views

Chainlink's Potential Breakout: Could LINK Soar to $20?

ChainlinkChainlink$15.6 -4.61% (LINK), one of the most extensively utilized decentralized oracle networks, has formed a notably bullish pattern that could potentially surge prices up to $20, as per a recent study. Despite broader market fluctuations, LINK has experienced a 16% climb over the past six sessions, consistently marking higher highs and lows. The current scenario suggests that LINK might have reached a crucial turning point, leading analysts to ponder the signs of a major price breakout.

Signs of an Ascending Channel Pattern

According to Coinpedia, there is an ascending channel pattern observable on LINK's daily price chart, which typically signals powerful upward moves upon breakout. This suggests that significant buying momentum, which has been building up during LINK's weeks-long consolidation between approximately $11 support and $15 resistance, might be let loose soon.

A Potential Surge to $20?

The confidence for a breakout stems from the strong trading volumes that have supported LINK's recent advances. Trading volume often acts as a gauge of investor interest, usually preceding price moves. With the increasing demand as LINK tests resistance, the stage appears to be set for a positive resolution of the channel.

A decisive breakout could trigger a rally towards the next hurdle of around $20, based on the measured move method employed in technical analysis.

Chainlink's Influence and Growth

Apart from the optimistic technical alignment, Chainlink continues to make strides across several key performance indicators. The project has amplified its integrations with top-tier platforms such as Protocol Labs, attracting high-profile buyers. One such example includes a whale purchasing nearly $8 million worth of LINK tokens earlier this month.

This robust adoption and accumulation by institutional entities hint at further valuation increases, particularly considering Chainlink's prominent position as the go-to oracle network for powering data feeds across nearly 1,000 decentralized applications.

The Price Prediction: A Double Up?

Analysts are predicting that, given its secure standing and strengthening on-chain as well as developmental activity, LINK's price could potentially double from the current levels of around $16 to $100 within the next three years.

However, there is always a chance of technical mishaps if LINK fails at resistance once more. In such a situation, a retracement towards the lower range of $14.50 might occur before the bulls gear up for another breakout attempt.

Edited by Jonathan Stoker

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