• Chainlink (LINK) climbs 3.76% amid strong market recovery.
• Weekly surge of 10.49% boosts investor confidence further.
• A bullish wedge pattern signals a breakout toward a higher resistance zone.
• Technical indicators support LINK’s potential rally toward $28.00.

Chainlink (LINK) is gaining traction across the crypto market as Bitcoin’s renewed strength fuels optimism in altcoins. The token has surged by 3.76% over the past 24 hours, extending its weekly rise to 10.49%. This performance highlights growing investor confidence in Chainlink’s midterm potential.

At the time of writing, LINK is trading at $22.68 with a market capitalization of $15.38 billion, up 3.78% in a day. The 24-hour trading volume stands at $857.54 million, reflecting a decline of 9.75%, which indicates some cooling activity after recent buying pressure. Despite the short-term dip in volume, the broader outlook remains constructive, supported by a steady increase in market engagement.

Also Read: Chainlink Rebounds Above $22, Can Bulls Ignite Surge Toward $27?

Technical Setup Points to Imminent Breakout

The LINK chart on the six-hour timeframe displays a falling wedge formation that has developed over the past two months. This pattern, marked by converging trendlines with lower highs and lower lows, is typically a precursor to bullish reversals. LINK is currently trading just below the wedge’s resistance near $22.74, suggesting a potential breakout phase.

A sustained push above the $23.00–$23.20 resistance range could confirm a breakout and potentially propel the price toward $27.63. This target aligns with the wedge’s height added to the breakout zone, representing a potential 21% upside. Traders keep this area in their sights because if it does see through it, it could see the re-entry of buying demand.

Traders also look at risk management. Confirmation of the breakout followed by a retest of the pullback could present a positive entry setup, with defensive stop-losses below the level of $20.00. But rejection at the resistance line would see the test back down to the lesser support in the wedge, and this would put off the anticipated move.

LINK Indicators Reinforce Bullish Bias

Momentum indicators back the building Chainlink bull case. The Relative Strength Index (RSI) is at 51.85, rising above its signal line of 44.42. This surge above it indicates rising buying force, and more room for increase before it hits overbought levels.

Furthermore, the Moving Average Convergence Divergence (MACD) has changed to the bullish side. The MACD line crossed above the signal line in addition to forming a positive histogram of 0.10949. Even though the MACD is still below the zero line, the move is an indication of the primary signs of a trend reversal.

Overall, the technical configuration and momentum indicators imply that the token is building up for a massive breakdown, which could start off the larger positive phase.

Also Read: Chainlink Eyes $30 Target as LINK Network Continues Expanding Strongly