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Chainlink (LINK) Price Creates Higher Low — Wave Count Targets $50 Level

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Ryan James

Key Takeaways

  • Chainlink (LINK) bounced at a long-term horizontal support.
  • The LINK price broke out from a descending wedge pattern.
  • Can LINK maintain its momentum and reach new highs in 2025?

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.

Chainlink Bounces at Support

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.

LINK Weekly Movement
LINK/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView 

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.

Can LINK Reach New Highs?

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.

LINK Breakout
LINK/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

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.

LINK Count
LINK/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

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.

New LINK Highs in 2025

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.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.
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