Chainlink Price Eyes $20 Breakout As Trendline Faces Final Test

Chainlink price was trading at approximately $13.44 on July 4, 2025, as technical signals crossed in an area of critical resistance. Analysts demonstrated converging bullish structures, showing that breaking above $14.40 would send LINK price above $18 or even higher to $20.

Chainlink Price Held $12 Support as Channel Pattern Develop

According to analyst Ali Martinez, Chainlink price has remained within a broad ascending parallel channel since mid-2023. LINK price action showed a bounce from the lower channel boundary near $12. That pushed the altcoin back toward the channel’s median line around $18.

As long as Chainlink price stays above $12, bulls will retain technical control of the structure. Earlier in the week, LINK price retested that support and successfully held, confirming its relevance.

Ali noted the higher structure indicated that a shift to $18-$20 was possible in case of breakout continuation. Such upside targets also coincided with Fibonacci levels throughout the channel.

The trend had a stair-step upwards progression. Besides, the recent strength further suggested the possibility of follow-through if resistance at $14.40 is breached. However, momentum could depend on overcoming the long-standing trendline that had capped Chainlink price since April.

Descending Trendline at $14.40

CryptoWZRD also pointed out that Chainlink price was testing a descending trendline on the daily timeframe. The resistance level at $14.40 was a vital point to breach. The analyst says a close above it would have injected an impulsive rally into $16.

WZRD pointed to the successful breakout, which will bring a blind move upwards to the $16 resistance level or beyond.

However, in case of a rejection, a pullback is possible to $12.30- $12.60, followed by breaking out again. Yet, bulls have an advantage with higher lows and a narrowing of price movements.

Moreover, trading volume at $14.40 is important for traders, as a break above would likely increase momentum to $16 and $18. The analyst’s Chainlink price setup reflected a classic compression breakout scenario.

Chainlink Price Elliott Wave Targets $18

The Elliott Wave analysis conducted by Man of Bitcoin created an additional technical confluence. His chart suggested that Chainlink price completed Wave (ii) and was forming Wave (iii), with breakout confirmation pending.

Three Fibonacci extension targets were valid. They were $16.57, $17.09, and $18.71.

The analyst also indicated some retracement at levels between $13.26 and $12.85. It might serve as support if the breakout does not hold. These zones offered potential bullish re-entry points before continuation.

Moreover, the direct bullish chart version hinged on an extended movement over the trendline. Had it been met, it would have signaled the onset of a multi-week impulse wave.

On-chain Data Supported Breakout for Chainlink Price

In the meantime, Coinglass data indicated that the volume increased by 2.28% to $813.02 million and open interest dropped by 2.39% to $566.93 million. Despite the drop in open interest, long dominance persists.

The top trader in the Binance long/short ratio reached 3.0883, and the LINK/USDT on Binance was 2.4072, indicating long positioning.

The OI-weighted average funding rate was also positive on large platforms. Historically, such a funding trend preceded bullish breakouts. More so, long liquidations counted $456.31K, in the past 24 hours, whereas shorts were positioned at $347.96K.

A Chainlink price breakout above $14.40 might induce pressure on short positions and produce a squeeze.

More crucially, the positive funding rate and the expanding spot volume signaled the mounting market confidence. If Chainlink price breaks the trendline resistance with sustained volume, the derivatives landscape suggests that the rally could extend toward $18 or even $20.