The post Can LINK Price Falling Wedge Breakout Target Levels Beyond $30? appeared first on Coinpedia Fintech News
The Chainlink ecosystem is currently showing signs of a major market turning point, with technical structures aligning perfectly with powerful on-chain metrics. The prevailing sentiment across several key indicators suggests that the heavy selling pressure may be bottoming out, setting the stage for a near-term rally. This technical and fundamental confluence is critical for assessing the immediate future of the LINK price.
The Technical Setup: Diagonal Support Holds Firm
Market observers have noted that the recent price action saw a precise contact with a long-standing diagonal trendline, which coincided directly with a crucial local demand area.
This simultaneous touch of two major support zones creates a high-probability setup for a bounce. LINK price today is therefore at a critical juncture; a successful rebound from this level would validate the strength of the underlying technical structure.
Furthermore, the market is currently experiencing the compression typical of a falling wedge pattern, according to other analyses. A confirmed breakout from this falling wedge could target levels well beyond the $30 mark, confirming a significant shift in market control.
On-Chain Sentiment Confirms Bottoming Process
While technical charts provide the roadmap, on-chain data offers a glimpse into trader psychology and value. Santiment’s 30-day MVRV (Market Value to Realized Value) ratio shows that the asset has entered “Extreme Buy Zones.”
This zone is historically significant because it indicates that the losses realized by traders have crossed into territory previously seen only at major historical bottoms.
Therefore, the odds are turning significantly higher for a strong relief rally to trigger soon. This sentiment indicates that the asset is fundamentally undervalued at its current LINK price USD levels relative to what long-term holders initially paid for it.
Therefore, the immediate short-term future hinges entirely on the token’s ability to clear the first resistance area following this bounce. If the token can successfully vault past this initial overhead obstacle, the probability of a full-on structural reversal increases dramatically, bolstering the long-term LINK price forecast.
Conversely, a failure to bounce decisively from the current demand area would invalidate the technical setup, necessitating a search for the next major support level.