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Chainlink Bridging TradFi, DeFi: Can LINK Price Break $15 Resistance?

  • Chainlink is actively bridging the TradFi and DeFi worlds.
  • LINK has faced a strong consolidation zone in recent months with price interaction seen around the 200-week moving average at $15.
  • Chainlink is setting up for a breakout with a classic falling wedge pattern.

Chainlink has been actively bridging the traditional finance (TradFi) and decentralized finance (DeFi) sectors, and with recent developments, LINK might be poised for gains in the long term.

At the recent SmartCon 2024 event held in Hong Kong, industry experts delved into how Chainlink continued to integrate TradFi with DeFi.

Zach Rynes highlighted the importance of this stage, stating how Chainlink’s growth and integration into institutional finance would contribute to the potential breakout.

Chainlink has remained a central figure in connecting decentralized and traditional finance systems. It has not only provided tools for cross-market integration but also sustained a strong network through collaborations and events such as SmartCon.

This sets the stage for the question—can LINK finally overcome its critical resistance now?

Chainlink’s weekly moving average chart illustrates several levels of resistance and support that have influenced its price action.

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LINK’s consolidation has brought it to a critical point around the $15 mark, setting up a potentially pivotal move.

Most notably, LINK’s 200-week moving average at $15 has been a point of resistance. A breakthrough above this level could signal a significant uptrend for LINK.

This resistance has held Chainlink’s price in check, acting as a ceiling for upward movements in recent months. With multiple moving averages converging, the pressure has built up for either a breakout or a retracement.

Source: IntoTheCryptoverse
Source: IntoTheCryptoverse

LINK’s moving averages, the 8-week, 20-week and 50-week ,are all positioned to test a potential breakout. The convergence of these averages around the $15 range emphasizes the critical resistance level.

The upcoming price movement would be influenced heavily by market sentiment, volume, and any institutional interest.

Chainlink has already exhibited signs of potential upward momentum, and a successful breakthrough here could mean a rally towards $20.

Potential Breakout from Falling Wedge Pattern

Chainlink also formed a falling wedge pattern, which usually hints at a bullish reversal once confirmed. The technical outlook implies that a breakout from the wedge would allow LINK’s price to rise considerably. Price can aim for target of $20 and possibly reaching as high as $23.

LINK’s falling wedge pattern developed adds weight to the potential bullish narrative. A move above the $15 resistance level would validate this formation. The next price targets would likely be $17 and above.

Currently, LINK sits around $10.63, and bulls would need to push it above the resistance zone at $15 to confirm any breakout.

Chainlink Price | Source: Trading View
Chainlink Price | Source: Trading View

The RSI and MACD indicators suggest that LINK could be in an oversold territory, hinting at a possible reversal.

Chainlink’s RSI has been near 42, indicating it could have room to grow should buying pressure resume. If the momentum sustains, LINK could see significant gains, especially if the volume backs the bullish sentiment.

With LINK’s price at a key consolidation zone and forming a bullish falling wedge pattern, it seems the market is bracing for a pivotal movement.

Should LINK break through $15, it might see new highs—with possible targets of $20, and key levels at $25 to $30.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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lennox gitonga
lennox gitonga
Lennox is a professional financial market analyst who's enthusiastic about blockchain, cryptos, and web3. He started blogging about cryptos back in 2019 and has since never looked back. His work revolves around looking at crypto-projects analytically on a technical and on-chain level, while also making sure it's palatable to the general audience.