- LINK has formed a bullish pennant, signaling a possible breakout above long-term resistance.
- LINK’s price holds steady despite negative sentiment, suggesting strong underlying accumulation.
- Technical indicators show fading bearish momentum and potential shift toward sustained uptrend.
Chainlink’s LINK is tightening the coil. That’s how traders describe the token’s current price action. After weeks of slow movement, pressure is building beneath the surface. Technicals are flashing potential. Sentiment is shifting. Many traders believe a strong move may be near. LINK currently trades around $14.57, with a market cap of $9.6 billion. While price action has been choppy, analysts are beginning to agree on one thing—momentum could explode upward.
Bullish Pennant Structure Signals Possible Breakout
The daily chart shows LINK pressing against a long-term descending trendline. This line has blocked price moves since late 2024. LINK now sits just under that line, priced near $15.24. Each past attempt has faced rejection. This time feels different. Price movement has formed a bullish pennant. These patterns often signal breakouts. Support between $10 and $11 has held strong. Traders view this as a zone of accumulation.
As resistance and support converge, LINK forms a tight setup. Traders are watching for a volume spike and a move above trendline resistance. Technical analyst Crypto Avi recently suggested a potential breakout from this pattern. He believes LINK could double in price if volume supports the move. History supports his view. Bullish pennants often break sharply to the upside. Volume remains the key. Without strong volume, breakouts often fade.
Sentiment Divergence, Weekly Strength Fuel the Case
Despite a red candle on June 11, LINK ended the day at $14.59, down 4.35%. The price reached $15.60 before falling. Traders took profits. Still, the lack of heavy selling kept the structure intact. Volume totaled $548.2 million, confirming strong market activity. The high volume, paired with only modest losses, shows strength beneath the surface. Analyst Bebo highlighted an interesting trend. LINK’s sentiment score dropped to –0.39, but price held steady. That signals bullish divergence.
LINK’s price stayed stable while sentiment fell. Often, that means large buyers are accumulating while retail exits. If mood flips and price breaks out, strong gains could follow. The weekly chart adds support. LINK trades between $10.10 and $15.00. Last week, LINK gained 6.12%. Buyers stepped in. Key resistance waits at $19.53. That level blocked rallies before. A move above that line changes everything.
MACD shows fading bearish momentum. The histogram is almost neutral. A bullish crossover seems likely. The Chaikin Money Flow reads –0.11. That suggests minor selling. But the reading has flattened. If CMF turns positive, that signals accumulation and growing confidence. For now, LINK has formed a bullish pennant beneath major resistance. Sentiment diverges while price holds steady, suggesting hidden strength. Momentum indicators flash early signs of reversal toward higher ground.
