LINK Breaks Free From Descending Channel as Bulls Eye $16.50+ Target

Chainlink (LINK) is currently priced at $13.41, marking a modest 0.99% gain over the last 24 hours. However, the real story unfolds within its technical structure on the 4-hour timeframe, where the token has been consolidating within a descending channel that’s now showing signs of potential breakout.

The Descending Channel Setup

On the 4-hour chart, LINK has been moving through a clearly defined descending channel characterized by lower highs and lower lows. This downward-sloping pattern has effectively capped upside momentum while establishing predictable boundaries for traders. The upper boundary of this channel sits near the critical $12.69 resistance level, which has repeatedly turned back aggressive buying attempts.

The lower boundary provides support around $12.26, which continues to act as a floor for pullback moves. Between these two walls, price action has remained orderly and compressed, creating a controlled trading environment where big swings have been absent.

Support and Resistance Under Pressure

The descending channel’s lower support at $12.26 has proven resilient, preventing price from collapsing lower during selling pressure. Meanwhile, resistance at $12.69 marks where the channel’s upper trendline currently sits. With LINK now positioned above $13.41, the token has already moved beyond this previous resistance zone, signaling a potential shift in the technical picture.

Against its major pairs, LINK shows relative strength—up 0.9% against Bitcoin and 1.3% against Ethereum over the past day. This outperformance suggests that buying interest remains intact despite the consolidation pattern.

Breaking the Descending Channel Could Unleash 25-30% Upside

The technical setup becomes interesting when a momentum-driven candle successfully clears and closes above the descending channel’s upper boundary with conviction. Historical measurements from similar patterns suggest that a confirmed breakout could catalyze a bullish extension of 25% to 30% from the breakout point.

At current levels, such a move would target the $16.50 to $17.40 range, representing meaningful upside potential. However, traders must remain disciplined—breakout confirmation requires solid volume and a clean close above resistance, not just a wick above the channel.

What Traders Are Watching

For now, LINK remains poised between two scenarios. Either the descending channel persists and confines price action to the $12.26-$12.69 range, or momentum builds sufficiently to break structure and trigger the projected rally. The coming sessions will likely clarify which path the market takes, with the descending channel’s upper trendline serving as the key decision point for directional clarity.