Published: Mar 14, 2025 at 09:20 AM
Updated: Mar 13, 2025 at 08:40 PM
- Chainlink’s megaphone pattern suggests a potential 300% breakout toward the $45 level.
- The RSI and Bollinger Bands indicate oversold conditions, hinting at a possible rebound.
- Political support from Trump’s administration strengthens Chainlink’s long-term growth prospects.
The price of LINK is nearing a key support level, and traders are paying close attention. A powerful price pattern has formed, suggesting a major breakout could happen soon. This structure, known as a megaphone pattern, often signals a strong trend reversal. If the pattern holds, a rally toward $45 may follow. However, failure to hold support could trigger a deeper drop. With market sentiment shifting, buyers and sellers are preparing for a major battle.
Chainlink’s price action reveals a broadening wedge, a formation with expanding trendlines. The upper boundary connects higher highs since late 2022. The lower boundary links key support levels from mid-2023. This setup often leads to strong price swings before a breakout. The current price hovers near the lower boundary. A rebound from this level could push Chainlink toward $30.
This price aligns with the 50% Fibonacci retracement. If buying pressure increases, a breakout could send the price soaring to $45. The 20-day Exponential Moving Average (EMA) sits at $15.64, acting as a strong resistance. A move above this barrier could confirm a bullish shift. Failure to reclaim this level may lead to further declines.
Arkham data shows that US government wallets hold over $1.28 million worth of Chainlink. President Donald Trump recently announced plans to include seized digital assets in a national reserve. His administration supports blockchain projects created in the United States.
Chainlink co-founder Sergey Nazarov attended the White House Digital Asset Summit. Nazarov praised Trump’s crypto-friendly approach and stressed the importance of blockchain innovation. Government backing could drive further adoption and long-term growth.
A strong bounce from support could trigger a 300% rally. However, resistance at $15.64 must break to confirm an uptrend. Political backing and increasing adoption add to the bullish outlook. Traders should watch key levels closely as Chainlink prepares for a potential breakout.
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