- Chainlink cracks its short-term bearish trendline, and this indicates new bullish power as the price movement is switched to the buyers.
- LINK is above the support zone of $16.7 to $17.0, and attention is now to confirm a break through above the resistance of the 17.5 levels
- On-chain data indicates that 30 wallets moved a total of $116.7M in LINK from Binance, revealing increasing confidence and accumulation among participants.
Chainlink ($LINK) has now also broken above its short-term bearish trendline and has received renewed buying pressure as the market shifts its attention to $20 resistance area.
Chainlink Breakout Sparks Momentum Shift Toward Key Levels
Chainlink has officially broken through the descending 4-hour trendline, after what felt like an eternity of downside per CryptoPulse. A break suggests a shift in short-term momentum in favor of buyers, with the asset now testing the weekly resistance near $17.45.
The resistance area has acted as resistance multiple times in the most recent sessions. Market participants are now watching to see if the new trend can sustain above $17.5, as that would certainly set the conditions for bullish continuation. The $16.7-$17.0 area should act as support, and it corresponds to the area of the trendline retest, which is what usually marks the next major move.
If the support area is held, LINK could trade higher toward the next key resistance area, and that would be between $19.5 and $20. If $16.7 cannot hold, then LINK would potentially trade back into the prior consolidation range for a while longer, delaying bullish confirmation.
After the prior upmove, the breakout appears to have exhausted trade velocity slightly, which may indicate traders want to test the prior price action area before gaining the confidence to make the third push higher (the time before x1 upmove to $17.50). The coming sessions are expected to provide clarity on whether buyers can sustain this early recovery phase.
Large-Scale Accumulation Strengthens Chainlink’s Bullish Case
Data from Lookonchain reveals that large investors have been accumulating LINK during the recent volatility. Since October 11, around 30 new wallets have withdrawn 6,256,893 LINK — valued at roughly $116.7 million — from Binance.
This accumulation activity indicates solid confidence within holders of high-value tokens, since moving tokens off exchanges is generally considered a preference for long-term storage. This trend matches the technical setup, as a breakout and subsequent retest tends to attract new inflows from investors who are watching the charts strategically.
The concurrent on-chain accumulation and stability in chart structure suggest that Chainlink is possibly in the early stages of a recovery. A confirmation above $17.5 would likely validate a breakout and sway sentiment higher into the $20 resistance area.
Chainlink’s price action is now dependent upon the market’s reaction around support and resistance. If bulls defend the lower boundary and volume increases, LINK may soon make a decisive push toward the $20 target.
