Chainlink’s price has started to show signs of recovery, with a 20% increase over the past four days. Some technical indicators suggest that the price could continue to rise in the coming days.
The price has broken out of an accumulation zone where it had remained for several days and is now poised to continue its upward movement.
Looking at the bigger picture, Chainlink (LINK) has been following a price pattern that closely resembles an ascending channel.
If you examine the chart below, you’ll notice that in 2020, the price was trading at the base of the channel. It accumulated there for a while before moving to the midpoint, which previously presented some resistance, before breaking through to the top of the channel.
It followed a similar path downward again, reaching the midpoint, which acted as temporary support before breaking through and returning to the base.
We can identify three key points: the top, the midpoint, and the base.
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The last LINK price movement, from $5.50 to around $23, also followed this same path.
From this perspective, we might see the price target the midpoint again. Currently trading at $15, we could see a price spike to around $25 in the coming days.
This would likely encounter some resistance, which could shake out some weak hands. Breaking through this resistance could trigger another rally to the top of the channel, above $35.
