Key Insights

  • Chainlink is consolidating in a symmetrical triangle pattern since 2021, with analysts eyeing a breakout above $24 for further gains.

  • The Chainlink Reserve has accumulated over 65,000 LINK, reducing available exchange supply and increasing potential upward price pressure.

  • Price targets include $31.8, $52.3, and a longer-term projection of $98, supported by technical momentum and ongoing supply constraints.

Chainlink’s price movement has tightened within a long-term consolidation pattern, pushing it toward a critical technical stage. The cryptocurrency has maintained stability despite recent market swings, with ongoing accumulation placing additional pressure on supply. Analysts suggest that these factors could set the stage for a significant breakout in the weeks ahead.

Market analyst Ali Charts has highlighted a symmetrical triangle formation in Chainlink’s price chart that has been developing since 2021. His analysis points to $24 as the key resistance level to watch. A confirmed move above this level could initiate a multi-stage upward trend, with $31.8 identified as the first major target based on the 0.786 Fibonacci retracement.

Higher Targets Supported by Historical Patterns

If momentum carries the price beyond $31.8, the next target stands at $52.3. Historical data on similar chart formations suggests these advances often occur in stages, with consolidation periods between each push. The analysis outlines the potential for a longer-term climb toward $98 if bullish momentum remains intact, with each stage requiring successful retests of resistance levels.

Source: X

Supporting the bullish outlook, the Chainlink Reserve has acquired 65,550 LINK, valued at approximately $1.4 million, at an average price of $16.83. This steady buying has been reducing the amount of LINK available on exchanges, which can lead to scarcity when demand holds steady.

Supply Constraints Add to Upward Potential

Reduced liquidity on exchanges often results in higher bids for remaining tokens, which could amplify the impact of a breakout. The ongoing accumulation strategy by the Reserve reflects strong market confidence and may influence broader sentiment among traders.

A breakout above $21.6 could act as an early trigger toward the higher projected targets. The combination of tightening technical patterns and a shrinking supply base provides a favorable setup for Chainlink’s price trajectory. Analysts note that previous post-accumulation phases have often delivered notable returns, suggesting the current market conditions could lead to a similar outcome.