Chainlink price has entered a technical correction, falling nearly 40% from its highest level this year.
Chainlink (LINK) was trading at $19.50 on Wednesday as cryptocurrencies remained under pressure.
Fundamental and technical indicators suggest that Chainlink is poised for a bullish breakout, potentially reaching an all-time high.
First, Chainlink is part of Donald Trump’s World Liberty Financial portfolio. WLFI has accumulated LINK tokens worth over $730,000, a notable development given Trump’s position as U.S. president.
Second, the Securities and Exchange Commission is expected to approve a spot LINK exchange-traded fund. Such an approval would likely drive significant hype and inflows, particularly as exchange balances for LINK continue to decline.
Third, Chainlink sits at the intersection of some of the crypto industry’s biggest themes. Its Cross-Chain Interoperability Protocol is a key component of the Real-World Asset tokenization sector, which analysts expect to be worth trillions of dollars in the coming years.
Major Wall Street firms, including BlackRock, Franklin Templeton, and Apollo, have recently launched tokenized assets, highlighting the growing institutional interest in this space.
Chainlink also plays a significant role in the stablecoin industry, where its proof-of-reserve solutions provide transparency for issuers. Additionally, it remains the largest oracle network in crypto, securing $33 billion in value and maintaining a 55% market dominance.
The project has also secured partnerships with leading global companies, including UBS, Coinbase, Swift, Fidelity, and Lemonade. These partnerships position Chainlink for significant scalability as the industry matures.
Chainlink price has formed strong technicals
The weekly chart shows that Chainlink formed a cup-and-handle pattern between 2022 and late 2024, a bullish technical setup that often precedes strong price rebounds.
More recently, LINK has developed a falling wedge pattern, characterized by two descending and converging trendlines. A breakout typically occurs when the price nears the confluence of these lines.
Additionally, Chainlink has entered the fourth corrective wave of the Elliott Wave pattern. This stage is usually followed by a fifth bullish wave, suggesting potential upside momentum.
Therefore, the LINK price will likely lead to a strong bullish breakout, potentially to the all-time high of $54.30, up by 180% from the current level. A drop below the lower side of the wedge at $15.6 will invalidate the bullish view.
