Chainlink (LINK) Price Increased 40% Last Week — Key Indicator Hints at Explosive Move

Chainlink’s price has increased rapidly since the start of November. It appreciated 160% during this time, reaching an over 1,000-day high on Dec. 9.

In addition to the positive price action, the Chainlink team announced seven new integrations of the Chainlink standard across different chains.

Since LINK has broken out from one of the final resistance levels before its all-time high, it could continue increasing at a similar pace until it reaches it. Let’s analyze the price action and see how likely this is.

Chainlink RSI Signal

The weekly time frame LINK chart shows a parabolic upward movement since the start of November. The increase started once LINK broke out from a 238-day descending parallel channel that had contained the correction since March.

Last week, the LINK price increased nearly 40%, closing above the long-term horizontal resistance area of $20.50.

This was the highest weekly close since January 2022. Because of the breakout, the only resistance left before the all-time high is at $36.

On top of the price action, technical indicators are bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing and have crossed their bullish thresholds.

The Chainlink RSI reading is especially interesting since the indicator has crossed above 70.

Historically, This signal (white lines) led to massive rallies ranging from 205% to 355%. A similar increase would take LINK to a new all-time high.

So, the weekly time frame readings suggest the LINK price increase will continue.

What Analysts are Saying

Analysts on X have a bullish view of the future LINK trend. Scofield posted a chart noting the minimal overhead resistance, suggesting that LINK can return to $50. Cephii is even more bullish, predicting a new all-time high that continues until the 1.61 Fibonacci extension at $240.

CaptToblerone gives an almost identical target, using the wave count to create this prediction. After reaching the high, he suggests that LINK undergo a lengthy correction.

Quinten noted the disparity between the LINK and XRP market caps. Although the former has many more real-world partnerships, the latter has a market capitalization that is over eight times bigger.

Finally, whale activity is also optimistic. A whale moved over $7 million worth of LINK to a self-custody wallet, while another put nearly $10 million on AAVE, borrowing funds to buy more LINK.

LINK All-Time High

The long-term wave count aligns with the positive price action and RSI readings. The most likely count suggests that LINK is in wave three of a five-wave upward movement (white), which has extended. The sub-wave count is in black. Since the Chainlink price is increasing parabolically, it is likely in sub-wave three.

If wave three is 1.61 times the length of wave one, common in extensions, LINK will reach a high of $37.88 before a major correction. Then, wave five can end at the 2.61 extension at $56.31, which would be a new all-time high price.

The short-term count is also bullish. The minor sub-wave count (yellow) implies that LINK is in minor sub-wave five and will reach a high near $32 before a minor correction.

This also aligns with the RSI reading since the indicator is overbought but has not generated any bearish divergence.

As a result, the wave count suggests the LINK upward movement will continue toward at least $32 before a noticeable correction.

Bullish Trend Ahead

Chainlink’s weekly RSI has given a long-term signal that previously led to 205-355% increases. The price action and wave count align with this bullish prediction.

Will LINK could undergo short-term declines, the long-term trend is likely bullish and will eventually lead to a new all-time high.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

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