Chainlink consolidated for 639 days below supply, building momentum for a possible breakout on the monthly chart.
Price is currently $24.15, reclaiming prior highs while trading above the 50-month EMA with upward momentum.
A monthly close beyond $25–$28 zone may trigger extended upside, but failure risks a return to lower channel levels.
Chainlink (LINK) is as of writing, trading at $24.15 after 639 days of consolidation, building pressure just below a major supply zone. The asset shows momentum on the monthly timeframe, with traders closely watching whether it can achieve a decisive breakout.
Re-accumulation Beneath the Supply Zone
Chainlink has spent over 639 days consolidating under a defined major supply zone. The asset has formed higher lows since its 2022 base while maintaining a rising channel. Each recovery from mid-level demand reflects steady absorption, setting the stage for stronger price action.
Alex Clay (@cryptclay) noted that the “ChainLink Monthly Timeframe looks absolute killing 639 Days re-accumulating below the Major Supply Zone Breakout is imminent.” This view reflects the technical structure, which points toward a breakout attempt. The consolidation below a long-standing resistance area has created stored pressure, a key ingredient for expansion.
This month’s price movement marks a strong extension from the reclaimed horizontal base, confirming the shift in risk-to-reward positioning. As a result, traders are monitoring whether momentum can carry the price into the supply zone with strength.
Technical Alignment Builds Confidence
Price has reclaimed the channel midline and continues to trade above the 50-month EMA. The moving average has shifted direction, turning from resistance into dynamic support. This alignment mirrors conditions observed before Chainlink’s historic expansions in past market cycles.
The market structure suggests confidence, as LINK has converted previously challenging levels into footholds. This change strengthens the technical picture for continuation toward the upper ranges. Traders emphasize that multi-year consolidation combined with a structural breakout often precedes strong upside.
Momentum indicators on the chart reinforce the upward pressure. With levels holding above reclaimed support zones, LINK maintains its position for an extended test of resistance. The risk scenario remains limited as long as price holds above the breakout point.
Testing the Supply Zone Ahead
The next major test is the supply zone, projected between the mid-$20s and upper-$20s. A monthly close above this band could create a vacuum, opening a path toward the higher channel boundary.
If supply is within the zone, price could accelerate quickly due to the absence of heavy resistance clusters. Market watchers consider this the defining stage of the current cycle, as it determines whether LINK breaks the multi-year consolidation fully.
On the other hand, a failed breakout and a return to the dashed red band would indicate another range deviation. In that case, attention would shift back to the lower channel line. However, current momentum supports the bullish scenario while risks remain contained.
