TLDR
- LINK has broken out of an Inverse Head and Shoulders pattern, signaling a bullish reversal
- Currently trading at $15.75, with strong support around $14.90
- Upside targets include $17.60, $19.60, and potentially $21.60
- Recent Chainlink integrations have increased, including with the Solana network
- LINK price shows high correlation with Bitcoin, which is entering a bullish phase
Chainlink (LINK) is showing bullish momentum as it trades just below the key $16 resistance level, with technical indicators suggesting further upside potential. The cryptocurrency has broken out of an Inverse Head and Shoulders pattern, which typically signals a reversal in favor of an uptrend following an established downtrend.
Currently, LINK is trading at $15.75 with a 24-hour trading volume of $529.39M and a market cap of $10.32B. Its price has increased by 17.58% over the last month, showing strong recovery momentum.
The $16 level remains a critical resistance point, with ongoing testing viewed as a positive sign for mounting momentum. Breaking through this level could push LINK toward higher targets, making it an attractive option for momentum traders.
LINK Daily Technical Outlook:$LINK closed indecisively and is teasing the $16 resistance on the Daily chart. A breakout above that level will trigger a quick rally and eventually push it higher towards $16.80, at which point LINK will become bullish and offer a trade 🧙♂️ pic.twitter.com/gmC4IztJRr
— CRYPTOWZRD (@cryptoWZRD_) May 20, 2025
After the recent breakout, LINK pulled back to revisit the $14.90 neckline, which has since acted as reliable support. This price action reinforces the bullish outlook, with traders eyeing potential moves toward $17.60 as the first target.
Technical analysts point to $17.60, $19.60, and $21.60 as key upside targets. However, Bitcoin’s price action remains a major factor that could affect LINK’s ability to reach these levels.
Network Growth Fuels Price Action
The Chainlink network has seen growing adoption in recent months as digital assets and web3 protocols gain mainstream acceptance. This increasing utility adds fundamental strength to LINK’s price movement.
Earlier this week, Chainlink announced a strategic integration with the Solana network, enabling Solana’s DeFi ecosystem to access Chainlink’s Cross-Chain Interoperability Protocol (CCIP) infrastructure.
Several DeFi protocols have also announced integrations with Chainlink to utilize its CCIP infrastructure, including Zeus Network, Liquity Protocol, and Shift RWA. These partnerships highlight the growing demand for Chainlink’s oracle services.
The LINK token, which is used to reward node operators and data providers, has benefited from this increased adoption by institutional investors.
Technical Outlook Remains Strong
In the daily timeframe, LINK price has established a rising trend since April 9, characterized by higher highs and higher lows. The cryptocurrency has already broken out and retested a falling wedge pattern established in the first quarter of 2025.
Looking at the four-hour chart, LINK has formed an inverse head and shoulders pattern, coupled with a rising divergence of the Relative Strength Index (RSI). These technical factors position LINK well for a potential rally toward the next short-term target around $19.80.
#LINK: Breaks Out From A Clear Inverse Head & Shoulders Pattern – #LINKUSDT @tradingview
LINK has broken out from a strong Inverse Head and Shoulders pattern, signaling a bullish trend.
After the breakout, the price pulled back to retest the neckline, finding strong support… pic.twitter.com/KT2zDythiR
— KLEJDI CUNI (@TradingPuzzles) May 20, 2025
The gradual rise in Bitcoin’s price has had a positive influence on the wider altcoin market, including Chainlink. LINK has recorded a high correlation with Bitcoin’s price year-to-date.
Traders and investors are watching LINK closely as it attempts to recover from last week’s decline of approximately 10%. The current setup suggests that LINK could continue its upward trajectory, provided broader market conditions remain favorable.
With its rising trend intact and technical patterns aligning, LINK appears poised for further gains in the near term as it tests the critical $16 resistance level.
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