Chainlink (LINK) has extended its winning streak, climbing to $21.19 and marking one of its strongest rallies of the quarter. The move comes after a bullish breakout from a falling wedge pattern, historically viewed as a sign of trend reversal.
Over the past two weeks, LINK has surged more than 30%, breaking decisively above the $16.50 support zone (highlighted in green on the chart). This breakout triggered a wave of buying interest, pushing the token into the $21–$22 resistance range—a zone not tested since early February.
“We’re seeing a textbook bullish continuation setup,” noted BITX technical analyst. “The combination of pattern breakout, strong support retest, and expanding volume is a compelling bullish signal.”
The falling wedge structure, which developed from mid-June to late July, signaled weakening bearish momentum before the price broke to the upside in early August. The breakout coincided with a notable spike in volume, often interpreted as validation of a sustainable move.
However, the $21–$22 resistance area remains a critical test. A clear break above this zone could open the path toward the $28–$30 range, while failure to breach it might result in a short-term pullback toward the $18 level.
With the broader crypto market showing renewed strength, LINK’s technical picture supports further upside potential. Yet, traders are watching closely for confirmation, as this level has historically been a strong supply zone.
The coming sessions will determine whether Chainlink’s breakout is the beginning of a sustained uptrend or a temporary rally before consolidation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
