It has been some time since Chainlink's last phase of outperformance. A cross-ecosystem project with various fundamental implications, is the LINK token initiating a rally that will allow it to reach its historic peak?
Chainlink, a newfound strength against the rest of the market?
It is Tuesday, December 13, 2024 and the LINK price is around $28.
The last analysis we carried out on LINK dates back to December 3, 2024, when its price was around $25. Since then, the price action has continued its bullish construction, managing to cross the symbolic $30 mark.
The most interesting thing about Chainlink currently lies in the relative strength it demonstrates against the rest of the market. Since the beginning of December, its dominance has shown very good signals. The low points of May 2022, June 2023 and November 2024 are aligned upwards and these recent weeks mark the break of a first resistance zone.
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This metric is important since it represents the market's interest in the Chainlink token. If dominance is increasing, arbitrage in favor of LINK increases, demonstrating capital aspiration.
If this trend continues, we could soon test the next resistance that rejected LINK in November 2023 and February 2024. As the market capitalization has appreciated significantly since these failures, this implies a continuation of the uptrend against the dollar for Chainlink .
Against Bitcoin, Chainlink is also regaining strengthcrossing the 50-week moving average at close last week. This is a very good signal which, after re-entering its range, could target the opposite terminal, thus marking a continuation of the LINK's outperformance.
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Chainlink price graph against Bitcoin on a weekly basis
Now in 13th position in the ranking of cryptocurrencies, with $17.85 billion in market capitalization, LINK is a must-have in the ecosystem. SO, where are we on this asset?
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| Pairs with Solana | 24 hours | 7 days | 1 month |
| Chainlink/USDT | +2.30% | +21.40% | +113.20% |
| Chainlink/Bitcoin | +2.90% | +19.10% | +86.50% |
| Chainlink/Ethereum | +3.00% | +21.00% | +74.00% |
Confirm above 28 dollars to continue!
Chainlink has engaged in an impulsive bullish construction, Bollinger bands are open monthly, weekly and daily. Volatility has therefore become well established on the LINK side over many time units.
On a daily basis, price action significantly ping-pongs a powerful uptrend between the Bollinger Bands and the SMA7. The December 9 correction and major selloffs across the market did not degrade the trend as it bounces off the confluence of the March 2024 highs and the 20-day moving average.
LINK therefore continues its rally, after having reconquered the 7-day moving average. The current work on $28 is consistent, it could also take a little time to resolve since this level corresponds to the peak of January 2022, a bull trap which had trapped many buyers before launching the bear market.
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So, if the inertia to break through the $28 resistance and settle above is not yet enough to target $35, LINK could look to regain some energy on the lower levels.
We have already mentioned the 7-day moving average which is moving around $25 and which will need to be monitored since dynamic support is rapidly moving upward. Thus, in the event that Chainlink consolidates laterally for a few days, the asset could find the impetus to revive itself in contact with this moving average, once it has joined it.
Alternatively, it could re-visit the SMA20D in confluence with the March 2024 highs around $22 or even look for a deeper correction near the 50-day moving average around $17. This last scenario is, however, not the most likely given the force currently being deployed.
Chainlink daily price graph
In summary, LINK is developing an impulsive bullish phase that the cascades of liquidations have not called into question. On the contrary, the asset found energy in this correction to cross the resistance of 28 dollars. Work on this resistance will tell us if the inertia is sufficient to continue towards $35 or if, on the contrary, Chainlink must consolidate before continuing.
So, do you think LINK can surpass its previous all-time high? Don't hesitate to give us your opinion in the comments.
Have a nice day and we’ll see you next week for a new technical analysis of altcoins.
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Sources: TradingView, Coinglass, Glassnode
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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
Analyst at Cryptoast Research for several years, I carry out in-depth monitoring of the crypto market to analyze the next narratives while keeping an eye on the financial markets.
Emmanuel Lazaro
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