Chainlink (LINK) is on the Verge of a Potential Trend Reversal After Weeks of Downward Pressure

Chainlink (LINK) is on the verge of a potential trend reversal after weeks of downward pressure. The token traded at $12.44 on April 17, just below the key psychological and technical level of $13.

Chainlink (LINK) is on the verge of a potential trend reversal after weeks of downward pressure. The token traded at $12.44 on April 17, just below the key psychological and technical level of $13.

As the price action now tests the upper resistance of a falling wedge pattern, traders are hoping for a breakout that could target gains of up to 74%.

Chainlink Price Battles Falling Wedge Resistance

Chainlink’s price has been locked inside a falling wedge structure since early Dec. 2024. The token formed lower highs while maintaining a relatively stable base around $10. A wedge breakout typically marks the end of a downtrend.

As of Wednesday, LINK approached the pattern’s upper resistance with visible uptick in volume.

Technical analysis points to a potential upside target of $22, based on the wedge’s height. This aligns with the Fibonacci extension levels, with the 1.618 Fib level around $22.19 also reinforcing the target zone.

Jonathan Carter flagged the breakout setup on TradingView, noting, “Price is testing the upper trendline resistance with increasing volume… A successful breakout and retest could trigger parabolic moves with targets at $15.40, $17.50, $20.00, $23.80 and $26.50.”

Carter added that a confirmed breakout could return LINK to its December 2024 highs. The chart shows LINK bounced off its local bottom around $10.18 and has since moved upward, reclaiming several key support levels near $11.50 and $12.

$13 Reclaim Becomes Pivotal Price Level

Despite the bullish setup, LINK must yet again claim the $13 level for bulls to gain control. Sjuul from AltCryptoGems pointed out that losing this level has placed Chainlink “in trouble” on higher timeframes.

“The $13 level was super relevant on HTF. It’s important to reclaim it, otherwise I can see this going lower,” Sjuul wrote on Apr. 17.

Sjuul’s analysis highlights the broader implication of this price action. Losing the $13 pivot would continue the structure on lower timeframes.

However, reclaiming this resistance-turned-support would shift structure in bulls’ favor. It also aligns with the 0.5 Fibonacci retracement level at $13.89, reinforcing its importance as a pivot zone.

Meanwhile, the Relative Strength Index (RSI) on the daily chart stands at 45.01—still below the 50-neutral line. This suggests Chainlink remains in consolidation, but rising momentum and volume offer early signals of strength.

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Broader Sentiment Shifts

Broader sentiment appears to be turning. Crypto Rand stated on Apr. 17 that a breach of the $13 range could confirm a “full bull reversal” for LINK. That view aligns with the falling wedge setup and macro indicators signaling trend exhaustion.

Volume has gradually increased over the past three trading sessions, a common precursor to breakout confirmation. Daily candles have printed higher lows, suggesting accumulation ahead of a breakout decision.

From a structural standpoint, LINK has room to rally if it confirms the wedge breakout. Immediate resistances are seen at $14.77 (0.618 Fib level) and $17.50, before the $22 target comes into play.

Still, failure to break $13 convincingly could extend the current downtrend. A rejection from resistance risks pushing LINK back toward $10.20 support. That zone has acted as a price floor multiple times since November 2024.

Chainlink’s current structure presents a classic breakout opportunity. The falling wedge pattern, rising volume, and oversold conditions add weight to the bullish scenario. But the $13 threshold remains a key battleground for short-term momentum.

Should LINK reclaim and hold above $13, bulls could eye a 74% upside move, with technical targets around $22. Until then, the market remains on watch for confirmation—or rejection.