Chainlink (LINK) accumulation hints at big breakout; check forecast

Key takeaways

LINK is up 4% in the last 24 hours and now trades at $14.
The coin can rally towards $17 soon, following weeks of accumulation around the $13 region.

The cryptocurrency market has resumed its upward rally following a poor start to the week. Bitcoin is trading above $109k once again, while Ether has crossed the $2,600 resistance level.

Chainlink’s LINK is one of the top performers among the leading 20 cryptocurrencies by market cap and looks set to rally higher in the near term.

LINK looks set to break out from its accumulation zone

LINK, the native coin of the Chainlink ecosystem, has been accumulating over the past few weeks. The accumulation comes despite Chainlink’s recent partnership with Mastercard and other protocols integrating its various products.

The coin has been trading between $12 and $14 over the last few weeks. However, the long period of accumulation could suggest a breakout soon, with many analysts expecting it to hit the $17 mark soon.

LINK eyes $17 as bulls push harder

The LINK/USD 4-hour chart is bullish and efficient thanks to its ongoing rally. The pair is also efficient after LINK swept liquidity around $12.8 over the weekend, suggesting that the bulls are preparing for another leg up.

The Relative Strength Index (RSI) of 64 indicates buying pressure for LINK, while the MACD lines in the positive zone also show that the bulls are in control.

If the rally continues, LINK could test the first major resistance level at $15.7 in the coming hours or days. An extended bullish period would allow LINK to trade around the $17.9 resistance level for the first time since May.

However, LINK would need the help of the broader crypto market if it intends to break above the January high of $26. 

The TLQ at $12.6 provides very strong support for LINK, and the bulls would likely defend this level if the market turns bearish. Failure to defend the $12.6 support level could see LINK retest the June low of $10.9.