Chainlink (LINK) Approaches Critical Juncture That Could Launch It Into a New Upward Trajectory

Chainlink (LINK) price is approaching a critical technical juncture that could determine its trajectory for the coming months. The oracle token currently trades near $15.74

Chainlink (LINK) price is approaching a critical technical juncture that could determine its trajectory for the coming months as the oracle token trades near $15.74.

The focus is on a potential breakout from a descending broadening wedge pattern on the daily chart.

This pattern has been defining LINK’s structure since late 2024, forming a series of lower highs and lower lows. The price is now testing the upper boundary of this wedge, previously a strong resistance level for the token, around $16.50.

According to cryptocurrency analyst Crypto Avi, a breakout from this wedge could result in a 40-60% rally in the ensuing days. This projection would carry LINK to the $25-26 price range, aligning with historical resistance zones.

#Link Near of Breakout of Descending Broadening wedge Pattern on the Daily TF , Expecting 40% – 60% Bullsh Rally Incoming Days.

This pattern shows convergence with higher lows in recent weeks. Trading volume has also increased during this period of consolidation.

A close above the wedge resistance would be crucial for confirming the breakout. Such a move could accelerate price movement through momentum trading and potential short liquidations.

Technical Indicators Signal Potential for Further Price Increase

LINK’s weekly BBPower indicator turned positive at 0.92. This marks the first positive reading since mid-February, indicating that buying pressure now outpaces selling pressure.

The Relative Strength Index also increased to 51.63, crossing above the neutral 50 threshold. This move confirms the increasing momentum as LINK exits its accumulation zone.

Recent price action shows a steady movement toward the $19.53 resistance zone. This level represents a critical technical barrier for mid-term direction.

The current structure displays reduced volatility with gradual gains, suggesting consolidation before a potential breakout attempt. Market participants are monitoring the $17.20 level as the next confirmation point. Breaking this trendline could set the stage for a move toward $19.50.

Development Activity Highlights Network Growth

Chainlink took the lead in Real World Asset development activity over the past 30 days. The project recorded more GitHub contributions than Avalanche (AVAX), Stellar (XLM), IOTA, and Injective Protocol (INJ).

This development focus centers on Chainlink’s Cross-Chain Interoperability Protocol and Proof of Reserve systems, facilitating token transfers and blockchain asset integration.

The protocol’s services, including Price Feeds, Proof of Reserve, and Verifiable Randomness, serve decentralized finance, gaming, and tokenization sectors.

Frequent developer contributions are a key indicator of project health and long-term network value. This momentum keeps Chainlink relevant for both cryptocurrency and enterprise systems.

LINK’s market capitalization is approaching $10 billion with 24-hour trading volume at $324.9 million. These metrics indicate robust liquidity and heightened buyer engagement.

The token experienced a 2.77% decrease over 24 hours to $15.13. This minor retracement suggests active price discovery supported by market interest.

For most of May, LINK displayed a positive uptrend backed by consistent volume, which might indicate accumulation by traders positioning for the breakout.

The weekly chart reflects a market transitioning from a multi-month downtrend. LINK previously reached a 2025 low near $10.07 before reclaiming higher levels.

If LINK closes above $19.53 this week, it would establish a higher high on the weekly chart, potentially opening the path to retest the $23-25 range.

Failure to break above resistance could result in a return to support near $14.50. The $16.00-$16.20 range serves as key near-term support for maintaining the bullish structure.

As long as LINK holds above $14.80, technical indicators suggest that the current uptrend could persist with targets at $22.00 and $30.00.