Chainlink Enters Accumulation Zone Ahead of Potential Breakout

Chainlink's price has entered an accumulation zone that preceded a significant rally in 2022, where it surged by as much as 550%. The current chart shows LINK below all major two-week EMAs and with resistance clustered between $10.31 and $12.73. Its RSI is near 40, indicating weak momentum.

The main upside target for Chainlink is its multi-year descending trendline, which has capped major rallies since the 2021 peak. To reach this zone, LINK must first reclaim $9.48 and break above the $10.30-$12.75 EMA cluster. A successful breakout would clear the path toward the trendline.

Chainlink's fixed supply is capped at 1 billion LINK, with around 748 million currently in the market. The remaining tokens are being released gradually, which could potentially impact the price if there is a large influx of new supply.