Chainlink (LINK) Token Shows Strong Bullish Momentum as It Approaches Key Resistance Levels

Chainlink's LINK token is showing strong bullish momentum as it approaches key resistance levels.

Chainlink’s LINK token is showing strong bullish momentum as it approaches key resistance levels. The cryptocurrency has formed an Inverse Head and Shoulders pattern, which typically signals a bullish reversal after a downtrend.

This technical formation, combined with rising network activity and a testing of critical price levels, suggests that LINK might be setting the stage for a substantial move higher.

As of Thursday morning, LINK was trading at $15.75, with a 24-hour trading volume of $529.39 million and a market cap of $10.32 billion. Over the past month, LINK has increased by 17.58%.

Chainlink’s native token is used to reward node operators and data providers within the Chainlink ecosystem, which has been rapidly expanding in recent months as digital assets and web3 protocols gain mainstream acceptance.

Chainlink provides decentralized applications with access to off-chain data and the ability to interact with other blockchains, enabling DeFi protocols to provide reliable services in an interoperable ecosystem. This utility has made it highly relevant to developers building decentralized applications.

Earlier this week, Chainlink announced a strategic integration with the Solana (CRYPTO: SOL) network, which will allow Solana’s DeFi ecosystem to access Chainlink’s Cross-Chain Interoperability Protocol (CCIP) infrastructure.

Several DeFi protocols have also announced integrations with Chainlink in recent months, including Zeus Network, Liquity Protocol, and Shift RWA. These integrations are designed to strengthen Chainlink’s ecosystem and expand its reach in the DeFi space.

Rising Momentum

Following the breakout from the Inverse Head and Shoulders pattern, LINK pulled back to retest the $14.90 neckline, a level that has since acted as reliable support.

Also in the daily timeframe, LINK has established a rising trend since April 9, characterized by higher highs and higher lows. The price has already broken out and retested a falling wedge pattern established in Q1 2025.

On the four-hour chart, the Relative Strength Index (RSI) is showing rising divergence, another bullish signal.

With support building and momentum gaining, LINK appears to be setting the stage for a potential upswing. Primary targets include $17.60, $19.60, and potentially $21.60. The technical setup appears strong enough to support movement toward at least the first two resistance levels, assuming overall market conditions remain supportive.

LINK’s price action has shown high correlation with Bitcoin this year. As Bitcoin approaches what some analysts describe as a “parabolic bullish phase,” this could provide additional tailwinds for LINK.

The anticipated “crypto summer of 2025” has brought increased capital flow to altcoins, including Chainlink. Some analysts expect an imminent reversal in Bitcoin dominance, which could trigger a sustained altcoin season.

LINK is now trading just below the key $16 resistance, caught between market uncertainty and rising bullish momentum. Traders and investors are watching closely for signs of a breakout or a continuation of the recent pullback.