What's Next For LINK After Yearly High? | Credit: Hameem Sarwar
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Key Takeaways
Chainlink reached a 1,057-day high of $$26.90 on Dec. 2.
The LINK price has increased parabolically this week.
How long can the Chainlink price sustain its momentum?
The LINK price enjoyed a positive November, increasing by 67% and nearly reaching a new yearly high. It sustained momentum in the first week of December and has increased by 30%.
The upward movement culminated with a high of $26.90 on Dec. 2. The same day, the Chainlink team announced positive news: 21x is adopting the Chainlink standard.
Because of the rapid increase, Chainlink faces only more resistance before it can target its all-time high. Let’s analyze the LINK price action and see if and when it will do so.
The weekly time frame chart shows that LINK has increased since its low of $8.08 on Aug. 5. The increase was initially gradual but accelerated after LINK created a higher low in the first week of November. The LINK price has increased by 130% since.
The $26.90 high on Dec. 2 was the highest price since January 2022. If the increase continues, the main obstacle will be $33.72, created by the 0.618 Fibonacci retracement resistance and a horizontal resistance area.
Technical indicators are bullish, suggesting the upward movement will continue. The Relative Strength Index (RSI) broke out from its bearish divergence trend line (green) and increased above 70.
In the 2020/2021 market cycle, increases above 70 started the most parabolic parts of the upward movement.
The Moving Average Convergence/Divergence (MACD) has made a bullish cross (black circle) and is positive. So, the weekly time frame price action and indicator readings give a bullish LINK price prediction.
Why is Chainlink Going Up?
The long-term wave count suggests that LINK is in wave three of a five-wave increase starting in May 2023. If the count is accurate, LINK is in wave three of this upward movement (white). The sub-wave count is in black, showing an extension of wave three.
Because of the extension, wave three has a minimum target of $37.93, giving it 1.61 times the length of wave one. Wave three may extend further, reaching the 2.61 extension of wave one, as has been the case with XRP. If this happens, LINK will reach a new all-time high of $56.47.
The daily time frame LINK chart also gives an extremely bullish outlook for the future trend because of the wave count. The most likely wave count shows a 1-2/1-2 wave formation, which often leads to a parabolic upward movement, as has been the case for LINK.
The sub-wave and minor sub-wave counts are in black and yellow, respectively. If the count is accurate, LINK is currently in minor sub-wave three, explaining the parabolic upward movement.
The short-term count favors an extension toward the all-time high since there is further room to grow in minor sub-wave three and no bearish divergence in the RSI or MACD.
According to the count, the Chainlink increase will continue without a major retracement until $37.88, after which the price can undergo a correction in what is likely sub-wave four.
Upward Movement Continues
The weekly and daily charts suggest the Chainlink increase is not over. On the contrary, LINK could reach a new all-time high this cycle because of the structure of its extensions. The weekly RSI also mirrors circumstances that accelerated the increase in 2020 and 2021.
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.
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.
