Key Takeaways
Chainlink ended 2024 on a high note, reaching a new yearly high of $30.94 in December. Even though the price fell the rest of the month, 2025 has brought renewed optimism as LINK broke out from a descending wedge pattern, signaling further gains.
Positive Chainlink news this week adds to the bullish sentiment. The team announced a partnership with BX Digital and BX Swiss, both part of one of the largest exchange groups in Europe.
In its weekly roundup, Chainlink revealed 12 new integrations of the Chainlink standard.
Combined with Chainlink’s higher low, the sentiment is turning bullish, setting the stage for new highs in 2025. Can the charts confirm this outlook? Let’s dive in to find out.
The weekly time frame shows that LINK broke out from the $21.50 horizontal area in December 2024, reaching a new yearly high of $30.94.
Even though LINK fell over 40% afterward, it regained its footing in the second week of January, creating a bullish engulfing candlestick (white icon).
The position of the candlestick was critical since it saved a breakdown from the $21.50 horizontal area. Because of the bounce, the decrease resembles a retest after the breakout rather than a failed breakout attempt.
The LINK price fell this week but has already reclaimed most of its losses, creating a long lower wick. If this was a retest, the next long-term horizontal resistance would be at $34.
Technical indicators give mixed readings. On the bullish side, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are above their bullish thresholds at 50 and 0, respectively.
However, both are falling and dhow waning momentum. So, while the weekly LINK price action is bullish, technical indicators give a mixed reading.
The daily time frame shows that LINK broke out from a descending wedge that contained the correction since the 2024 high. The descending wedge is considered a bullish pattern, meaning it usually leads to breakouts.
After starting an upward movement on Jan. 13, LINK broke out from the wedge on Jan. 16 and reached the $25.50 horizontal resistance area.
Currently, the Chainlink price attempts to create a higher low and make another breakout attempt above $25.50. If successful, this would take the LINK price above its 2024 highs.
Similarly to the weekly time frame, technical indicators are mixed. The RSI and MACD are above their bullish thresholds but have started falling.
The wave count supports this breakout. According to the count, the drop following the 2024 high is wave four (white) in a five-wave increase ongoing since August 2024.
The correction completed a fourth-wave pullback, reaching the resistance of an ascending parallel channel that connects waves one and two.
If the count goes as predicted, the LINK price has begun the fifth and final wave of its increase. The sub-wave count is in black, suggesting the rally will resume soon.
The first target range for the top of wave five is between $37.11 – $38.52. The lower range of the target is created by giving wave five 0.382 times the length of waves one and three combined. The 1.61 external Fibonacci retracement of wave four creates the upper limit.
If wave five extends, it can reach a high between $49 and $51.36, a range created by the 2.61 external retracement and 0.618 length ratio.
Since neither of these targets would represent a new all-time high, an unusual extension will be needed to break the $53 all-time high.
The LINK price has shown resilience in 2025 by breaking out from a corrective pattern and creating a higher low.
If the price maintains its structure, it can soon break out above its 2024 highs, with the wave count providing an initial target between $37.11 and $38.52.