Analyst Highlights Chainlink Breakout Zone, Price to Hit $40 Next? 

The hype around the popular decentralized oracle network Chainlink favors the ongoing token gains. The token has achieved significant attention from investors, rising to nearly $30 in December 2024. Though the price had dropped past that, the Chainlink price recovered quickly. Interestingly, a crypto analyst called its current performance within the breakout zone, gaining investor attention. Let’s discuss whether LINK could break out soon or not.

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Chainlink Price Enters Accumulation Zone, Ideal For Rally

Popular crypto analyst Rose Premium signals that the Chainlink price has been consolidating below the key resistance level of $28 for nearly 13 days now. This zone acts as the accumulation zone, which sees strong buying activity. At present, LINK is trading at $26.03 and has been under consolidation for days. Still, the experts see it as the perfect buying opportunity, as the momentum is building for a complete uptrend.

According to Rose X post, the breakout zone sits right below the current accumulation zone, where the Fibonacci retracement and resistance-turned-support act as the bullish rally’s foundation. As a result, if the LINK price drops to the breakout level between $18-$20, this will act as another buying opportunity, as this could especially lead to a bullish rally.

Interestingly, many similar analysts have predicted a LINK price rally in January, increasing its credibility. Nevertheless, investors must watch the key level to make the right trading decisions.

Breakout & Price Target To Watch

The Chainlink price chart reveals the formation of the bullish triangle, which represents the bullish trajectory of the token. LINK currently trades at $26.03 and has surged 6% In the last 24 hours, confirming the breakout potential. With that, the key resistance levels to watch are $28.46, $34.11, and $39.48.

However, the token must cross the short resistance at $28.46 to enter the rally. Once this happened, this could support the breakout further, eventually pushing the LINK price to $40

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What’s Next For Chainlink Price?

The LINK token has gained significant attention from the market for the past few weeks. Even at present, it has surged 6% with high investor interest, as the trading volume is up by 117%. Considering the positive outlook, analysts believe in a LINK price rally. More importantly, this could easily test $40 amid strong fundamental and increasing adoption, claims Rose.

Moreover, Rose highlighted that $28 is a key resistance and the accumulation zone below this. If the price dropped to $18-$20, this could lead to a breakout due to a bullish triangle pattern formation. However, due to the volatility and unpredictability of the cryptocurrency market, investors must do further research before taking any risks.