Chainlink might have escaped the long range of consolidations and the excitement may be back on the bull side as they have waited months to see a decisive breakout.
Currently trading at 15.53, LINK has surged over the downward trendline resistance, now displaying the most obvious technical breakout in more than one year.
Source: CoinMarketCap
The daily RSI has leapt to 67, indicating a build-up of bullish movement but not into an overbought state. In the meantime, the trading volume has increased by 8.49% to 1.27 billion dollars, which validates the active spot market participation.
As historical resistance at approximately $16.50 draws closer, the structure of Chainlink looks as though it has much higher potential in the event that this breakout holds.
Is buyer aggression enough without a volume spike?
Although the volume of trades is on a progressive increase, it has yet to catch up with epic historical upswings that characterized explosive LINK rallies in the past. The existing volume of 1.27B per day marks an increased interest but has not passed the 2-3 levels like during a major breakdown such as occurred in November and March.
Source: Coinglass
Nevertheless, this rise in volume indicates more confidence compared to past accumulation ranges. This narrative can be reinforced by the RSI floating above 67 which implies that buyer conviction is gaining momentum.
Nevertheless, when volume fails to trend higher, as LINK aims to cross the resistance at $16.50, then bulls might have a hard time managing pressure.
Could derivatives be the hidden fuel for this breakout?
The MACD on the daily chart has just shown a bullish crossover, and the distance between the signal lines is growing. This is usually accompanied by strong actions, especially in the presence of derivatives. The direction of the open interest and the funding rate (which is implied by bullish sentiment) show that leveraged traders are joining the breakout.
Provided it persists, it may serve as a force multiplier that drives LINK even further. This brings risk, though, as should the momentum stifle and the funding reverse, then these leveraged stands can rapidly unravel. Consequently, continuation in price will be based on active interest from spot and derivative traders.
Source: Tradingview
Will the $16.50 ceiling give way under pressure?
A key resistance level sits around $16.50, which has rejected price action multiple times over the last few months. The volume and liquidation charts show pressure building just below this line, suggesting that a breakout could trigger stop-loss hunts and short liquidations. Historically, LINK has responded explosively when breaching such compression zones.
If the price breaks this resistance with solid volume, it could quickly travel to the $20–25 region. If it breaks through, the chart pattern projects a measured move toward the $30 zone, as illustrated in the wedge breakout analysis from WorldOfCharts.