If Chainlink (LINK) holds support, traders should watch for a breakout above $15.64, with targets at $30 and $45.
Chainlink LINK $13.10 24h volatility: 0.9% Market cap: $8.35 B Vol. 24h: $1.09 B , the 14th-largest digital asset, dropped 9.55% on March 11. The decline comes amid a 28.64% increase in trading volume, signaling heightened seller activity.
With a market cap of $8.16 billion, LINK has already suffered a substantial 31% decline over the past month, according to CoinMarketCap. Despite this downturn, the cryptocurrency’s weekly chart has formed a major bullish pattern.
On the weekly chart, Chainlink has formed a megaphone pattern—a broadening wedge characterized by two ascending and diverging trendlines.
The upper boundary connects LINK’s higher highs since November 2022, while the lower boundary links its lowest points since July 2023. Historically, this pattern often leads to a powerful rebound once the price reaches the lower support zone.
Currently, LINK is approaching the lower boundary of this megaphone formation. If the pattern holds, a sharp rebound could drive the price toward the resistance at the $30 price level, which coincides with the 50% Fibonacci retracement level.
A breakout above this resistance would pave the way for a surge toward $45—a 300% rally from current levels.
However, a breakdown below the lower boundary would invalidate this bullish thesis, pushing LINK toward critical support at $5.57, a historically strong level between 2022 and 2023.
The Relative Strength Index (RSI) has dipped to 34.28, suggesting an entry into the oversold territory. If the value falls below 30, it could indicate that LINK is undervalued and may be primed for recovery.
Meanwhile, the Chainlink price action is currently testing the support at the lower Bollinger Band at $12.46. If this holds, a rally toward the upper Band at $18.76 is likely in the short term.
The 20-day Exponential Moving Average (EMA) is also positioned at $15.64. This level is a key short-term resistance.
A decisive move above the 20-day EMA could confirm bullish momentum, allowing LINK to retest higher levels. Notably, the failure to reclaim this level could see further downside pressure.
Arkham data reveals that wallets linked to the United States government hold over $1.28 million worth of LINK.
United States President Donald Trump earlier announced that the US Crypto Reserve would include all the digital assets that the government has seized over the past few years.
Trump has focused heavily on “Made in America” cryptocurrencies, and LINK stands to gain a lot under his administration. Chainlink co-founder Sergey Nazarov recently attended Trump’s White House Digital Asset Summit.
Nazarov praised Trump’s crypto-friendly approach and emphasized the need for the US to lead the next evolution of the financial system through blockchain and Web3 infrastructure.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.