- Chainlink is consolidating in a tight range, with a potential for a possible breakout that could fuel a rally.
- Support between $18 and $21 is keeping the bullish trend alive despite recent price dips.
- Breaking above $23.50 could open the door for a move toward $25.50 and beyond.
Chainlink’s price shows calm as it trades within a narrow range, holding key support levels. Investors are closely watching for a breakout in the coming sessions.
Bullish Structure Holds as Price Compresses
Chainlink has been showing a pattern of higher highs and higher lows moving within a narrow range between $21.80 and $22.80. This kind of consolidation often signals a pause before a larger move. Trader Matthew Dixon identifies strong support between $18.00 and $21.00, adding that as long as the price remains above this zone, the upward trend is expected to hold.
Dixon describes the recent pullback as a typical correction rather than a serious decline. The Relative Strength Index (RSI) sits around 50, indicating the market is taking a breather rather than reversing. This suggests there is room for the price to rise again if buying interest returns.
Breakout Above $23.50 Could Trigger a Run to $25.50–$29.00
According to Dixon, a decisive breakout above $23.50 would confirm bullish continuation and open the door for short-term targets at $25.50 and potentially as high as $29.00.
RSI breaking above 60 would further validate renewed buying pressure. The absence of strong selling wicks or high-volume dumps suggests that distribution is not occurring — another bullish sign.
The broader Elliott Wave structure supports this outlook. After bottoming at $18.08 in late September, LINK has followed with impulsive upward legs and shallow pullbacks, characteristic of a developing bullish wave count.
Other Possibilities to Watch
As long as LINK stays above $20.00, the overall uptrend should remain intact.The outlook is positive, but a short-term pullback to retest $20.50 to $21.00 before moving higher again is possible.
As of this writing Chainlink is trading at $21.03, after a 3.7% decline in the past 24 hours and 5.83% over the last week. A recent market cap drop from $15.5B to $14.5B on October 10 confirms investor caution, following a failed breakout at $23.50 .
Still, as long as LINK maintains above its support levels, the bias remains tilted toward a bullish breakout.
