With a new surge in the crypto market, as Bitcoin reclaims the $43K mark, certain altcoins are ready to push through for a new breakout trend. With the improving market sentiments in the crypto market and the New Year rally just around the corner, the LINK price shows buyers capitalizing on the market dynamics to gain early momentum.
Further, the long-term trend in Chainlink shows a rounding bottom pattern known for trend reversals and high-momentum breakout rallies. Therefore, with buyers anticipating a breakout rally in Chainlink, the LINK price prediction suggests a rally beyond $20.
LINK Price Analysis: Rounding Reversal Teases Breakout Rally
Source – Tradingview
In the weekly chart, the uptrend in LINK price marks the second bullish week and displays a 23% growth within a fortnight. Further, the high momentum uptrend teases an early completion of the rounding bottom pattern with a neckline at $18.38.
Chainlink prices surpass the 23.60% Fibonacci retracement at $16.169, teasing a bullish sustenance. Further, the growing momentum teases to prolong the uptrend to the 38.20% level at $23.
With a 10% long jump last night, the LINK price action forms a bullish engulfing candle to prolong the streak of higher high formations. Further, the intraday growth of 3.28% in Chainlink makes another consecutive engulfing candle and fractures the ascending resistance trendline.
With this increase in bullish momentum, the LINK price trades at $17.27 and projects a high likelihood of buyers challenging the psychological mark of $20.
EMA: The weekly 50 and 200 EMA give a bullish crossover, marking a golden crossover for the first time in the weekly chart of Chainlink. This gives a strong signal for a trend reversal in LINK price.
DMI indicator: The VI lines give a positive crossover, supporting the weekly golden crossover. Further, the ADX line is taking a short-term reversal and signals a rise in trend momentum of Chainlink.
Will Chainlink Reach $25?
In recent weeks, the LINK price has made a remarkable resurgence in 2023, becoming one of the best-performing altcoins. With a year-to-date gain of 215%, Chainlink continues to power its bullish rally on increasing demand.
In addition, with renewed and increasing interest from bulls in the altcoin, there is a solid rally for $17, which teases an uptrend beyond. If the uptrend continues above the $18 level, the altcoin can reach $20. Moreover, the breakout trend can challenge the overhead fib level close to $23.
However, a reversal below $17 could result in a retest of the $15 level.