Tracking Chainlink breakout: Will LINK hit $23 after smashing $15 resistance?

• Chainlink broke out of a descending channel, retested $15 resistance, and targets $23 next.
• On-chain metrics and liquidation data support sustained bullish momentum for $LINK’s rally.

Chainlink [LINK] has decisively broken out of its long-term descending channel, signaling a dramatic shift in momentum. This breakout comes after months of consolidation and bearish pressure, suggesting a potential trend reversal.

At press time, LINK was trading at $14.97, up 2.77% in the last 24 hours, with a market cap of $9.39 billion. 

Trading volume has surged by 86.04% to $981.98 million, reflecting increasing market participation. With the price retesting the $15 resistance, $LINK seems poised for a rally toward the $23 target.

LINK retesting key levels with strong bullish momentum

The retest of the $15 resistance level, a crucial price zone, adds further weight to $LINK’s bullish breakout. This level, now acting as a springboard, could propel the token to a 53% upside, targeting the $23 resistance. 

Historically, breakouts of this nature have led to extended rallies, and the $15 retest is considered a strong confirmation signal. Consequently, traders are closely watching whether $LINK can consolidate above this level in the coming sessions.

Source: TradingView

Momentum indicators provide additional bullish signals. The MACD shows a growing divergence between the MACD and signal lines, coupled with a rising histogram of green bars. This suggests that buying pressure is steadily increasing. 

Moreover, a Fibonacci retracement from the previous lows to the recent breakout places the $23 level at a critical resistance zone, confirming its importance in the broader price trajectory.

Source: TradingView

LINK on-chain activity reinforces positive outlook

On-chain metrics further support the bullish narrative. The number of active addresses has increased by 1.24% over the last 24 hours, reflecting growing engagement with the Chainlink network.

Additionally, transaction counts have risen by 1.76% to 13,065 in the same period. These increases in activity point to heightened network usage, which often correlates with price increases.

Source: CryptoQuant

Liquidation data highlights bullish sentiment

Liquidation data indicates that traders are overwhelmingly betting on $LINK’s price increase. Long liquidations totaled $67.61K, significantly higher than short liquidations of $10.63K, showcasing strong market confidence.

This imbalance suggests traders expect further price appreciation, adding another layer of optimism to the current outlook.

Source: Coinglass

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Conclusively, Chainlink’s breakout from the descending channel, alongside the successful retest of $15, signals that $LINK is well-positioned to reach the $23 target.

With strong technical indicators, growing on-chain activity, and bullish liquidation data, the rally appears sustainable. Therefore, $LINK is likely to hit $23 in the near term, provided it consolidates above $15.