NAIROBI (CoinChapter.com) —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. The price action now tests the upper resistance of a falling wedge pattern, raising hopes among traders for a breakout that could target gains of up to 74%.
Chainlink’s price has been locked inside a falling wedge structure since early Dec. 2024, forming 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 near $25. 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.
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$13 Reclaim Becomes Pivotal Price Level
Despite bullish setup, LINK must reclaim 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.
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.
Bull Case Strengthens as 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 Nov. 2024.
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Chainlink’s current structure presents a classic breakout opportunity. The falling wedge pattern, rising volume, and oversold conditions add weight to the bullish scenario. However, 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 near $22. Until then, the market remains on watch for confirmation—or rejection.
