• Chainlink (LINK) shows bullish momentum, approaching key resistance around $16, hinting at a potential $20 breakout.
• Daily and weekly charts indicate positive signals, including green candles and a Dragonfly Doji on LINKBTC.
• Short-term outlook remains strong; continued momentum could push LINK past $16.90 toward $20.

Chainlink is acquiring positive momentum with increasing market confidence, which is a hint for a breakout. Analysts note that the bearish pattern is weakening for this coin, and it will largely depend on market sentiment for Bitcoin. If it manages to break past significant resistance levels, it might unlock overall upside.

Chainlink Nears Key Resistance Zone

A well-known crypto analyst, CRYPTOWZRD, pointed out that Chainlink has closed with a bullish signal, but that more momentum is required for it to verify that it is on a stronger trend. He stated that Bitcoin market trends will play a critical role in deciding LINK’s future.

Also, both Daily LINK and LINKBTC indicators ended with green candles. Despite this, LINKBTC is slightly ambiguous on a daily chart. Moving on to a weekly chart, it can be observed that LINKBTC formed a Dragonfly Doji. This is commonly found preceding a possible rise. Also, Daily LINK closed with a slight pullback along with a long lower shadow, which implies that buyers entered at lower levels.

At the moment, Chainlink is trying to break past the resistance in the $16 area. Once a breakout is confirmed, the price will likely move past $20. Similarly, for LINKBTC, a breakout past the resistance and lower high line will increase the chances for a bull run.

At the time of writing, Chainlink (LINK) is trading at $16.31, supported by a 24-hour trading volume of $1.06 billion and a market capitalization of $11.34 billion. The price has climbed 7.87% over the last 24 hours, showing a solid recovery and growing optimism among investors.

Also Read | Chainlink Whales Purchase 4 Million LINK Amid Weak Market Trends

LINK Shows Strong Short-Term Momentum

From a short-term perspective, LINK is actually showing promising developments. From the intraday chart, it is evident that LINK is fluctuating but overall in a positive fashion, with value above the lower high line. Analysts have predicted that if this trend continues, it will reach $16.90. Going past this point would increase interest, but going below might lead to a sideways trend.

Currently, it seems that the market is waiting for the next big trading opportunity, with all attention fixed on the role of Bitcoin for any guidance on the next big market move for Chainlink.

Also Read | Chainlink (LINK) Price Forecast: Can Bulls Push LINK Toward the $26.20 Target?