Bullish Breakout Pushes LINK to Highs of $8.38; Can Bulls Sustain Momentum

LINK bounced off key support of $6.87 and surged to the recent high of $8.38 as bulls took control.

• Chainklink price sparks a fresh breakout today, passing above the $7.50 resistance level.
• The cryptocurrency had been consolidating in the mid-$7 range since mid-July.
• Chainlink’s current resistance is $8.38, where the price broke out.

Chainlink’s LINK token has seen a strong rally over the past week, with prices rising from around $7 to over $8.38. This latest breakout has allowed LINK to reach its highest level since mid-June as bulls take control of the market momentum. 

LINK had been trading in a consolidation pattern between $6.87 to $7.50 for most of July, unable to break out of the tight trading range. However, LINK bounced strongly off the key support at $6.87 last week and started its upward move. Chainlink is up by 17.14%, trading at $8.11 at press time.

LINK Trades Above Major Moving Averages

Chainlink trades above the 20-day and 50-day Simple Moving Averages (SMA), indicating that the bulls still maintain control over LINK. On the daily chart, the breakout formed with a bullish engulfing candlestick pattern on strong trading volume.

This validates the bullish conviction behind the move and increases the likelihood of further upside. The 20-day EMA is trending above the 50-day EMA, and the LINK price is trading well above these short and long-term moving averages. This indicates an established uptrend in play.

The relative strength index has crossed above 70 into overbought territory, so a minor pullback may occur as LINK consolidates around $8. This would be healthy for the uptrend’s sustainability. If LINK manages to establish support above $7.50, it could make another attempt at breaking the $8.38 resistance.

The MACD histogram bars are increasing and moving into positive territory, supporting the bullish momentum.

The main levels to watch are the breakout point at $7.50 and the recent swing high at $8.38. As long as LINK sustains above $7.50, traders will look for an eventual move above $8.38, opening the door for a continued rally toward $9-$10. On the downside, if LINK fails to establish support above $7.50, it could return to $6.87 and below.  Bulls must defend this level from bearish pressure and keep the uptrend intact for more upside action.

The Aroon indicator on the daily timeframe shows the uptrend gaining strength as the Aroon-Up line rises while the Aroon-Down remains near zero. The Aroon-Up crossed above 70 on July 29th, indicating a strong uptrend as prices surged. This lines up with the recent breakout.

Looking ahead, LINK trades within an ascending channel formation, suggesting that the bulls control price action. If LINK breaks out above $8.38 and sustains its gains, we could see prices move toward new highs.