Chainlink (LINK) is experiencing a strong upward trend. The price has quickly risen from around $14 to over $17, even hitting a high of $19.
An analyst on platform X has identified the next price that LINK could reach after breaking through a key resistance level, in the context of Chainlink's ecosystem being included in the U.S. Securities and Exchange Commission's (SEC) cryptocurrency working group.
This strong price increase occurred from July 12 to July 17, showing very positive momentum in the market.
As of now, LINK is trading at $17.91, down 2.92% in the last 24 hours but up 16.78% for the week. Price movements indicate that investor confidence is increasing, but the question remains: Where will Chainlink go next?
LINK breaks through key resistance
Notably, analyst Ali Martinez has provided forecasts based on significant technical developments. Martinez emphasized LINK's price chart compared to USDT on the daily timeframe.
Accordingly, the price has just surpassed the critical resistance level around $17.46, which has been the 'price ceiling' since mid-April.
The breakout of LINK above this resistance level is seen as a significant milestone.
If the price maintains above $17.46, this could trigger the next upward momentum, as this is a sign that buying pressure is increasing, and the upward trend is likely to continue.
Before this breakout occurred, the price consolidated within a clear range, fluctuating between $10.6 and $17.46, with support and resistance levels forming a characteristic consolidation pattern.
Key resistance levels and potential price targets
With the breakthrough of the $17.46 mark, the next resistance levels that investors should pay attention to are $19 and $22. If LINK can break through these levels, the upward trend will be further strengthened.
Surpassing $22, LINK's next target will be $28 — equivalent to a potential increase of 52% compared to the current price. This price point will be a significant milestone, reflecting the increasingly widespread positive sentiment towards the token.
Some analysts are even more optimistic. Analyst ZAYK Charts recently pointed out that the ascending triangle pattern on the chart has been broken.
This pattern is characterized by an ascending support line and a descending resistance line, often signaling a consolidation phase before a breakout occurs.
The breakout above the resistance trendline indicates increasing buying pressure, with a potential price target of up to $30.09 — approximately 63.35% higher than the current price.
Chainlink joins the SEC's cryptocurrency working group
While technical indicators and chart patterns play an important role, external factors are also contributing to the increased optimism towards Chainlink.
The biggest motivation driving the recent price increase comes from Chainlink's announcement that they will join the SEC's Cryptocurrency Working Group.
With the participation of other major parties such as ERC3643Org and EntEthAlliance, this working group aims to build guidelines for trading tokenized assets legally and in accordance with regulations.
The SEC's intervention is a move that indicates a tighter future in the regulation of the crypto market, especially as stricter regulations are expected to be implemented in 2025.
However, this direction aims to clarify the legal framework and create a safer environment for investors and users, as it seeks to increase transparency and legal compliance for the tokenized asset market.
The impact of this announcement on investor confidence is likely to be positive. This means a level of legitimization and backing from regulators for the project.
The announcement of the partnership between the SEC and Chainlink will largely be viewed as a positive development, while also significantly enhancing Chainlink's recognition and reputation in the market.
Along with positive technical signals on LINK's price chart, the collaboration with the SEC makes this token likely to become a well-performing asset in the near future.