Will the Momentum Hold As It Tests Key Resistance Levels?
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Chainlink has emerged as a top-performing altcoin in the latest crypto market rally, climbing 75% since forming a solid base in mid-April. This move follows a clean reaction off a long-standing trendline that dates back to its 2023 lows — a structure we highlighted in our April 14 commentary.
After months of downtrend and sideways action, LINK began showing early signs of accumulation just above its 2023 trendline support. As Bitcoin and Ethereum led the broader market higher, LINK joined the momentum, confirming its breakout on both the daily and weekly timeframes.
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That April 14 base has now turned into a springboard, launching LINK into a multi-week climb that has caught the attention of traders and investors looking for strong altcoin plays.
Currently, LINK is facing a critical test. The weekly chart shows price trading into a significant supply zone between $17.60 and $19.848 — a region where LINK was previously rejected earlier this year. Historically, this type of zone has triggered profit-taking and pullbacks, so bulls will need to demonstrate real strength to break through.
This resistance isn’t just technical — it also represents a psychological hurdle where many traders may choose to de-risk after a strong run.
The real test will come if LINK pulls back. If buyers step in during the next retracement and create a higher low, it could be a pivotal signal that the broader trend is shifting from bearish to bullish.
Such a development would set LINK apart from many altcoins, which have struggled to maintain bullish structure or establish higher timeframe reversals after months of decline.
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While the recent rally is impressive, it’s important to keep the bigger picture in mind. LINK is still down approximately 66% from its 2021 all-time highs, underscoring how much room remains for long-term recovery. This perspective is crucial for managing expectations and navigating volatility.