TLDR
- Chainlink (LINK) is forming a descending wedge pattern that could lead to a 40-60% rally to $25-$26 if it breaks above $16.50
- Technical indicators show bullish momentum with RSI above 50 and BBPower turning positive for the first time since February
- LINK currently trades around $15.13-$16.07 with strong support at $16.00 and key resistance at $19.50
- The project leads Real World Asset development activity on GitHub, showing active network growth
- A breakout above $17.20 could trigger moves toward $22.00 and potentially $30.00
Chainlink price is approaching a critical technical juncture that analysts believe could trigger substantial upward movement. The oracle token has formed a descending wedge pattern on daily charts, with recent price action testing resistance levels that have capped gains since late 2024.
LINK currently trades around $15.13 to $16.07, representing a minor pullback from recent highs near $16.50. The token maintains a market capitalization of approximately $10 billion with 24-hour trading volume of $324.9 million.
The descending wedge formation has defined Chainlink’s price structure through a series of lower highs and lower lows. Analyst Crypto Avi identified this pattern as potentially bullish, noting that LINK is now testing the upper boundary of the wedge around $16.50.
#Link Near of Breakout of Descending Broadening wedge Pattern on the Daily TF , Expecting 40% – 60% Bullsh Rally Incoming Days. 📈#linkusdt #Chainlink #Crypto pic.twitter.com/ndNGkLR9pX
— Crypto Avi (@crypto_tech_avi) May 22, 2025
A confirmed breakout above this resistance could lead to price targets between $25-$26, representing potential gains of 40-60% from current levels. This projection aligns with historical resistance zones and would mark a shift from the current consolidation phase.
The pattern’s technical structure shows convergence with higher lows in recent weeks. Trading volume has increased during this formation, supporting the thesis of a potential bullish reversal.
Technical Indicators Turn Positive
Weekly chart analysis reveals improving momentum indicators across multiple timeframes. The BBPower indicator has turned positive at 0.92, marking the first positive reading since mid-February. This shift indicates buying pressure beginning to outweigh selling activity.
The Relative Strength Index has climbed to 51.63, crossing above the neutral 50 threshold. This move suggests LINK is transitioning out of an accumulation zone with growing momentum.
MACD indicators show positive divergence while moving averages display an upward trend. The 20-day EMA has crossed above the 50-day EMA, providing additional technical confirmation.
Price action since April has established a pattern of higher lows, indicating strengthening support levels. The $16.00 zone has emerged as key near-term support, with bulls maintaining control as long as price remains above this level.
Development Activity Supports Network Growth
Chainlink leads Real World Asset development activity over the past 30 days according to Santiment data. The project recorded more GitHub contributions and commits than competing protocols including Avalanche, Stellar, IOTA, and Injective.
This development leadership centers on progress with Cross-Chain Interoperability Protocol and Proof of Reserve systems. These technologies assist with token transfers and integration of off-chain assets.
The consistent developer contributions indicate ongoing network health and utility expansion. Chainlink’s oracle systems remain central to the growing RWA sector as financial institutions adopt tokenized products.
The protocol’s core services including Price Feeds, Proof of Reserve, and Verifiable Randomness continue seeing adoption across decentralized finance, gaming, and tokenization sectors. This fundamental utility provides support for sustained market interest.
Key resistance levels to watch include $17.20 for initial breakout confirmation, followed by $19.50 as the next major target. A successful move above $19.50 could open paths toward $22.00 and longer-term targets near $30.00.
Support remains well-defined with $14.80 serving as a critical level for maintaining the current uptrend structure. Price action above $16.00 continues to favor bulls in the near term.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
