Chainlink broke out of a 3-year falling wedge, turning $13.50 and $17.50 into support, with $55.39 as a long-term target.
LINK nears resistance at $30.32 with RSI at 67.73, signaling momentum; support at $27.50 could hold during pullbacks.
Sustained volume and higher highs since November highlight bullish momentum, with $32.50 as the next short-term target.
Chainlink ($LINK) has been surging toward new highs. According to analysis from ZAYKCharts, the cryptocurrency has gained over 190% following a breakout from a prolonged downtrend.
Currently trading at approximately $29.98, the asset is positioned to challenge key resistance levels, with projections pointing to a potential move as high as $55.39. The breakout is supported by strong technical patterns and increasing buying momentum.
Technical Patterns Indicate Bullish Momentum
ZAYKCharts identifies two key falling wedge patterns that have defined Chainlink's price movement over the last three years. The first wedge, which spanned from 2021 to early 2022, saw a downward trend eventually give way to a bullish breakout.
Source: ZAYK Charts
However, this rally lost strength by mid-2022. The second falling wedge, observed between 2022 and late 2024, displayed a similar downward movement but ended in a decisive breakout in Q4 2024.
Falling wedges are traditionally associated with bullish reversals, and Chainlink's breakout confirms the end of its extended downtrend. Following this move, the cryptocurrency surpassed critical resistance levels, including $13.50 and $17.50, which have now become key support zones. With its current trajectory, Chainlink faces intermediate resistance at $35–$40 before targeting the long-term projection of $55.39.
Price Action and Key Indicators Show Strength
At $30.98, Chainlink is approaching a resistance level of $30.32, with steady volume supporting its upward movement. Recent trading activity reflects growing buyer interest, as evidenced by a volume surge during the early December breakout. Despite nearing overbought territory with an RSI of 67.73, the momentum remains intact.
Source: TradingView
The Moving Average Convergence Divergence (MACD) indicator shows the MACD line converging with the signal line, while the histogram sits at -0.01. This indicates that bullish momentum could weaken in the short term unless a breakout above $30.32 occurs. Monitoring support levels at $27.50 is advised, as any pullback may test this zone before resuming the uptrend.
Critical Levels to Watch for Continued Gains
Chainlink’s current price movement highlights a strong uptrend that began in late November, characterized by higher highs and higher lows. A sustained move above $30.32 would confirm further upside, with $32.50 identified as the next key level. On the other hand, a failure to break resistance could lead to a pullback toward $27.50 or even $25.00.
ZAYKCharts also notes that Chainlink's breakout from its long-term pattern could lead to a price discovery phase if it surpasses the $55.39 target. However, maintaining support above $17.50 and $13.50 is essential to sustain the bullish structure.
