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Most of the leading cryptocurrencies in the market have been trading in the red zone. However, a few show signs of making a strong breakout towards record highs due to increased buying pressure.
Chainlink (LINK/USD) has made double-digit gains during the past 24 hours, and its two-week gains are currently at around 36%. The price trend has formed a strong basis for a bullish breakout.
Chainlink shows bullish signals
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Chainlink is currently trading at crucial support levels. Going by the past performance of this coin, these support levels have marked the beginning of a bullish rally, and this trend could be repeated again.
The price of LINK is currently around 50% below the all-time high set in May 2021, when the cryptocurrency market was at its peak. The recent price movement shows that LINK has started 2022 on a strong footing, and the coin has managed to rise past critical resistance levels.
The current major support level for LINK lies at $25, and going by the current price at $26, the coin has managed to break out, and it is currently headed towards the support at $27. This high will soon be achieved if the buyer support continues and the altcoin makes a notable bullish rally.
The price action could also be triggered by whale addresses. Whale addresses are usually known for booking profits, and given the price trend that LINK has been exhibiting, the coin could be headed towards a notable bullish rally if whale addresses step into the market. If the buyer support holds, new all-time highs could also be set.
A downtrend is still possible
The coin has been exhibiting a strong uptrend, attributed to profit booking after a dip towards $20 in late November. Therefore, this action of profit booking could be exhausted, in which case a string price recession could be recorded.
If the price continues to take the dips, LINK will drop towards $23. A dip towards $20 is also possible, but such lows could trigger buying from investors that want to take advantage of the low prices. Further dips below these levels could depend on how the broader market performs.