Chainlink (LINK) Shows Bullish Breakout as On-Chain Data Hints at Rally to $26

The crypto market is buzzing as Chainlink (LINK) shows a bullish breakout. With LINK hovering just above $12.80,

The crypto market is buzzing with activity as Chainlink (LINK) shows signs of a bullish breakout, potentially setting the stage for a rally towards $26.

While LINK price is currently trading just above $12.80, analysts suggest it could soar even higher if it smashes through a crucial resistance level.

The cryptocurrency has moved out of oversold territory and is forming a potential reversal pattern, leading traders and investors to keep a close watch for that next big breakout.

Chainlink Reclaims Key Support

Chainlink has firmly reclaimed the $12.28 support level, a key zone identified by analyst Ali Martinez. This foundation could be the springboard for a bullish trend reversal. The next significant challenge lies at $14.58 – an overhead resistance level that has historically capped upward moves. If LINK breaks and holds above this zone, it could open the floodgates to a stronger rally.

Key support for #Chainlink $LINK sits at $12.28, while the main resistance barrier to watch is $14.58!

This also coincides with increased market participation around this level.

This is also the same price zone where we saw a large on-chain opportunity for LINK.

Martinez’s analysis is complemented by broader on-chain data suggesting increased market participation around this level. The current LINK price movement – gradually ascending from oversold conditions – echoes bullish sentiment, especially among short-term traders betting on a breakout.

Breaking the Wedge: Why LINK Price Could Go to $26

Technical expert CRYPTOWZRD highlights a bullish formation on LINK’s chart – a falling wedge pattern. This setup, commonly seen before major breakouts, is appearing across both LINK/USD and LINKBTC pairs. Currently, LINK is testing the $12.50 mark with an indecisive close, suggesting a potential build-up before a breakout move.

The falling wedge points to a bullish breakout toward $16 in the short term. But here’s where it gets exciting: if LINK convincingly breaks past the $14.58 barrier, CRYPTOWZRD believes $26 could be a realistic upside target. Such a move would represent over a 100% gain from current levels.

Chart 1: ChainLink/TetherUS chart, published on TradingView, April 19, 2025

However, caution is still warranted. Intraday LINK price action remains range-bound, with key trade opportunities emerging only on a breakout above $13.20 or a breakdown below $11.80. The $14.19 resistance zone remains a psychological ceiling that bulls must flip to support for the rally to be sustained.

On-chain data adds context – more than 53% of LINK holders are currently underwater, with 78.24 million LINK purchased at prices above current levels. This means there’s potential for heavy resistance as the LINK price nears breakeven zones. Conversely, 44.63% of holders “in the money” could offer a stable support base.

The Road Ahead: All Eyes on Resistance

If the bulls manage to conquer the $14.58 resistance, the road to $26 becomes clearer – but not without hurdles. LINK’s fate is also tied to Bitcoin’s overall trend, especially as both assets often move in tandem during high-volatility phases. The presence of institutional traders and AI-driven bots could also accelerate any breakout, just as they have in recent market spikes.

As macroeconomic uncertainty continues, traders should keep an eye on broader market cues, especially inflation data and Federal Reserve policy updates, which could trigger correlated movements across the crypto market.

Final Word: $26 Is Possible – But It’s No Cakewalk

Chainlink has all the technical ingredients for a breakout, but it’s now a waiting game. The bullish setup is clear, yet the $14.58 resistance stands tall. With AI, whales, and social sentiment playing their parts, the next few trading days could be critical. If you’re eyeing $26, keep your charts close and your alerts closer – LINK might just be gearing up for liftoff.