Cryptocurrency analyst Alex Clay shared a technical analysis indicating a potential buying opportunity for Chainlink (LINK) after its bounce to key support levels. The analysis suggests multiple price targets based on chart patterns and technical indicators.
Alex’s monthly chart shows the formation of a cup and handle pattern in LINK’s price action from mid-2021 through 2023. The cup shape formed during an extended period of consolidation, while the handle appeared in the latter part of the pattern in 2024.
Great opportunity to enter #connection Now
$link Returned to breakout levels of cup and handle formation monthly
Add to my main bag here! Complete submission
– Alex Clay (@cryptclay) December 30, 2024
Medium Term Selling Zone 1 – $38.35
A breakout of this formation occurred near the $20.66 price level. Current price action shows LINK testing this breakout point, which acts as a support level on the charts. At press time, LINK is trading at $20.37. The value of the token has declined over the past day and week.
Specific price targets across multiple time frames
Clay set specific price targets for different trading prospects in his analysis. Medium-term targets set the first target at $38.35, followed by the second target at $47.30.
The long-term price outlook extends even further, with an initial target of $58.80. The highest price target is at $73.90, which represents the upper long-term target based on technical analysis.
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Market structure and support levels
The technical setup identifies the $20.66 level as a key support area, coinciding with the handle breakout point. This price area gains strength from historical trading activity and turns previous resistance into support.
Price action The price broke above the downtrend line, marking the end of the previous downtrend. This breakout reinforces the bullish market structure observed on the monthly time frame.
Clay expressed his belief in the setup via social media, saying it was “In addition to my main bag here! Complete submission.” The analyst’s chart analysis includes multiple technical factors, including Fibonacci extensions and past market structure points to validate identified target areas.
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