Chainlink (LINK) is at a critical juncture as its price approaches a key support level, drawing increased attention from traders. A significant price pattern has emerged, indicating a potential breakout in the near future. This structure, known as a megaphone pattern, often signals strong trend reversals. If the pattern holds, LINK could rally toward $45. However, failure to sustain support could trigger a deeper correction.
If this support level holds, #Chainlink $LINK could surge to $45! pic.twitter.com/dbU9ov3bZa
— Ali (@ali_charts) March 11, 2025
Megaphone Pattern Suggests Volatility Ahead
Chainlink’s price action has formed a broadening wedge, a technical setup characterized by widening trendlines. The upper boundary connects higher highs from late 2022, while the lower boundary links key support levels from mid-2023. Historically, this formation results in sharp price swings before a decisive breakout.
At present, LINK is hovering near its lower boundary. A rebound from this zone could propel the price toward $30, aligning with the 50% Fibonacci retracement level. If buying pressure intensifies, LINK may break out and surge to $45. The 20-day Exponential Moving Average (EMA) at $15.64 serves as a key resistance level. A clear move above this threshold could confirm a bullish trend, while rejection may lead to further downside pressure.
Government Backing Bolsters Chainlink’s Growth Prospects
Institutional interest in Chainlink is rising, with Arkham data revealing that U.S. government wallets hold over $1.28 million worth of LINK. Former President Donald Trump recently proposed integrating seized digital assets into a national reserve, signaling growing political support for blockchain initiatives.
Adding to the optimism, Chainlink co-founder Sergey Nazarov attended the White House Digital Asset Summit, where he emphasized the importance of blockchain innovation. Political backing could further drive adoption, solidifying Chainlink’s long-term growth prospects.
Also Read: Chainlink (LINK) Price Hits Critical Support: Will Bulls Defend or Bears Take Control?
Traders Brace for a Pivotal Move
With LINK teetering at crucial support, the coming days will be decisive. A successful defense of current levels could ignite a 300% rally, but the $15.64 resistance must break for bullish confirmation. As political and institutional interest grows, traders should closely monitor key price levels for a potential breakout.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
