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- Chainlink (LINK) breaks $19.50 with strong bullish momentum and targets $38 next.
- LINK closely tracks Ethereum, hinting at potential accelerated gains.
- Solana (SOL) mirrors LINK’s setup, possibly pushing toward a new all-time high.
Chainlink (LINK) has surged past the $19.50 resistance level, signaling strong bullish momentum. The breakout follows a textbook bullish engulfing candlestick, propelling LINK above the midline of a long-term ascending channel in place since early 2024. This move comes after a 35% rally last week, capturing traders’ attention and sparking optimism for further gains.
Momentum indicators are supporting the upward trend. The Relative Strength Index (RSI) has crossed above 50 for the first time this year, while the Moving Average Convergence/Divergence (MACD) has entered positive territory. Historically, this setup preceded LINK’s near-tripling in November 2024, hinting that a repeat rally could be underway.
Short-Term Waves Signal Rapid Growth
Chainlink’s daily price action reveals a rare series of 1-2/1-2/1-2 wave structures, suggesting LINK is in the acceleration phase of its bullish cycle. Analysts point to wave three as the most rapid portion of upward movement, reinforcing the bullish case. If this trajectory continues, the channel’s resistance trend line at $38 is poised to become the next significant target.
LINK Tracks Ethereum’s Momentum
LINK’s recent surge closely mirrors Ethereum’s (ETH) price movements. Since much of Chainlink’s Total Value Secured (TVS) resides on Ethereum, ETH’s push toward its all-time high has fueled LINK’s rise. With Ethereum slightly ahead in the rally, LINK could accelerate to catch up, maintaining the strong correlation that has defined its performance in 2024.
Also Read: Chainlink (LINK) Surges 14% with Volume Spike, Eyes Bullish Breakout to $36
Solana on the Cusp
Solana (SOL) appears to be following a similar technical setup. While SOL has yet to fully break out, its price structure mirrors LINK’s pre-breakout pattern. A successful breakout could push Solana toward its all-time high of $260, with potential for even higher levels in the long term.
The outlook for both LINK and SOL remains bullish. Chainlink has room to climb toward $38, while Solana may follow, challenging previous highs. Traders and investors are keeping a close eye on these developments, signaling an exciting period ahead for crypto markets in 2025.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
