In today’s analysis, we’re building on our previous outlooks that pointed to the possibility of a sustained bullish trend across the digital asset market. This time, we’re zooming in on a specific token that not only satisfies essential criteria for a favorable entry setup but also stands out within the broader market structure as a high-potential opportunity: Chainlink.

Chainlink technical analysis

LINKUSD - 1 Day Time Frame

What sets LINK apart is its alignment with a clearer bullish market structure—one of the most objective indicators of directional strength. Adding to that, the token recently moved into a discount zone, offering a prime entry point for those aiming to position early. When both structure and price context align, the probability of a move exceeding 100% becomes a scenario worth close attention.

Looking back at the original setup, the key trigger was a sweep of Sell-Side Liquidity (SSL) just below the internal higher low formed in early May—significantly, within the discount zone. This mirrors institutional behavior, where commercial players buy “down” and sell “up.”

The strong bullish reaction that followed—culminating in a close above the final resistance zone, which had previously defined bearish price action—served as clearer confirmation, even for retail traders seeking structural validation.

Chainlink price target

While the mantra “risk management is everything” is widely shared, knowing how to apply it is just as important. A sound strategy starts with a well-placed Stop Loss (SL). In this case, the SL could sit just below the internal swing low, as illustrated in the attached chart. This ensures protection in the event the setup fails or the bullish structure collapses. As a further safeguard, part of the position can be closed if the price breaks below the support zone on the daily timeframe.

Once the SL is defined, Take Profit (TP) levels could be aligned with key Buy-Side Liquidity (BSL) areas—price levels that typically act as magnets in a bullish scenario. These zones offer natural points for partial and final profit-taking, helping reduce exposure while locking in potential gains systematically.