NOIDA (CoinChapter.com) — Chainlink has lined up several bullish signals that could send LINK price surging to new all-time highs. A bull market could help the rally continue by attracting more buyers into the market.
One positive signal for Chainlink tokens comes from the expansion of the project’s v0.2 staking program. After increasing staking capacity from 25 million LINK to 45 million LINK, the program saw capacity fill up quickly. The surge in staking means increased interest from traders.
Additionally, the staking program can help create a stronger ecosystem for Chainlink by strengthening network security and increasing user engagement.
Additionally, a mysterious whale has recently accumulated a significant amount of LINK tokens. In just 5 days, Whale collected over 4.5 million LINKs across multiple wallets. Whale movements often shake up market dynamics due to their massive trading volumes.
Another bullish signal for Chainlink price
LINK/USD pair is ‘falling wedge‘Patterns can be viewed on a monthly basis.
A pair of converging trend lines forms a descending wedge pattern. This pattern occurs when an asset’s price makes lower highs and lower lows, with the lows being steeper than the highs.
This pattern usually indicates a possible bullish reversal. The target price of the pattern is equal to the widest distance between the trend lines at the start of the pattern added to the breakout point.
A significant breakout can signal strong market confidence, making the trend more likely to continue.
Following technical analysis rules, LINK price could surge more than 601% if the pattern unfolds, reaching the theoretical price target near $141. Historically, this pattern has been a harbinger of significant strength coupled with increased volume.
For Chainlink, if this pattern resolves, the price could rise significantly if market conditions coincide. Traders often look for a decisive close above the upper trendline of the wedge to confirm a breakout before considering a long position.
LINK price faces bearish risks from RSI
LINK price has been strong since January 26th, rising nearly 52% to reach a daily high near $20.7 on February 11th. However, the uptrend faces a bearish risk from the moment the oscillator RSI enters overbought territory. It scored 71.01 points on the daily chart.
Therefore, it is likely that the bears will try to push LINK price towards support near $18. Additionally, a violation of the immediate support level could lead Chainlink token to test the 100-day EMA (blue wave) support near $14.7.
However, LINK price could reach resistance near $22.5 if Chainlink bullish signals help the token begin an upward trend. A reversal of immediate resistance could help Chainlink price target resistance near $25 before a correction.