Chainlink (LINK) Price Approaches Breakout Point That Could Trigger Substantial Upward Movement

Chainlink price is approaching a critical technical juncture that analysts believe could trigger substantial upward movement.

Chainlink price is approaching a critical technical juncture that analysts believe could spark substantial upward movement. The oracle token has formed a descending wedge pattern on daily charts, with recent price action testing resistance levels that have capped gains since late 2024.

Small pullsbacks in crypto markets saw LINK slip to $15.13 from recent highs around $16.50. The token maintains a market capitalization of around $10 billion with 24-hour trading volume of $324.9 million.

Analyst Identified Descending Wedge Pattern

The descending wedge formation has defined Chainlink’s price structure through a series of lower highs and lower lows. Breaking down the pattern, Analyst Crypto Avi said:

This pattern is usually associated with a period of consolidation or a gradual decline in price, characterized by converging diagonal resistance and support bands.

As the pattern develops, the price tends to oscillate between these converging lines, making smaller and smaller highs and lows.

A breakout from a wedge pattern can occur in either direction, with the directionality usually determined by the broader market trend and other technical factors.

Breaking Out Of Descending Broadening wedge Pattern on the Daily TF Expecting 40% – 60% Bullsh Rally Incoming Days.

Expect 40% - 60% gain From Here. As Breakout From Descending wedge Is Usually Very Strong.

Expecting Strong Breakout Above 16.50 Expect 25$ - 26$

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Tag A Friend Who Is Using This Strategy. #linkusdt #Chainlink #Crypto pic.twitter.com/ndNGkLR9pX

— Crypto Avi (@crypto_tech_avi) May 22, 2025

A confirmed breakout above this resistance could lead to price targets between $25-$26, representing potential gains of 40-60% from current levels. This projection aligns with historical resistance zones and would mark a shift from the current consolidation phase.

The pattern’s technical structure shows convergence with higher lows in recent weeks. As the wedge tightens, it’s crucial to observe how trading volume reacts.

Technical Indicators Turn Positive

Weekly chart analysis reveals improving momentum indicators across multiple timeframes. The BBPower indicator has turned positive at 0.92, marking the first positive reading since mid-February. This shift indicates buying pressure beginning to outpace selling activity.

Relative Strength Index has climbed to 51.63 and crossed above the neutral 50 threshold. This move suggests LINK is transitioning out of an accumulation zone with growing momentum.

MACD indicators show positive divergence while SMA indicators display an upward trend. The 20-day EMA has crossed above the 50-day EMA, providing additional technical confirmation.

Price action since April has established a pattern of higher lows, indicating strengthening support levels. The $16.00 zone has emerged as key near-term support, with bulls maintaining control as long as price remains above this level.

Development Activity Supports Network Growth

Chainlink leads Real World Asset development activity over the past 30 days according to Santiment data. The project recorded more GitHub contributions and commits than competing protocols including Avalanche, Stellar, IOTA, and Injective.

This development leadership centers on progress with Cross-Chain Interoperability Protocol and Proof of Reserve systems. These technologies assist with token transfers and integration of off-chain assets.

The consistent developer contributions indicate ongoing network health and utility expansion. Chainlink’s oracle systems remain central to the growing RWA sector as financial institutions adopt tokenized products.

The protocol’s core services including Price Feeds, Proof of Reserve, and Verifiable Randomness continue seeing adoption across decentralized finance, gaming, and tokenization sectors. This fundamental utility provides support for sustained market interest.

Key resistance levels to watch include $17.20 for initial breakout confirmation, followed by $19.50 as the next major target. A successful move above $19.50 could open paths toward $22.00 and longer-term targets near $30.00.

Support remains well-defined with $14.80 serving as a critical level for maintaining the current uptrend structure. Price action above $16.00 continues to favor bulls in the near term.