Chainlink (LINK) has started the new year on a stronger footing, climbing more than 5% and moving back above a key technical level amid improved sentiment across the broader cryptocurrency market. Increased buying interest and higher trading activity have helped LINK distance itself from recent lows, shifting attention to whether this rebound can develop into a more sustained recovery on the higher time frame.

Chainlink technical analysis

LINKUSD - 1 Week Time Frame

On the weekly chart, the 12 level stands out as an important support, which LINK has recently reclaimed and is now trading above. This zone has acted as a stabilizing area following the latest pullback and aligns with renewed demand seen at the start of the year.

As long as price holds above 12, further upside may extend toward the 15 resistance, a level that has repeatedly capped advances in recent months. This area represents the first meaningful obstacle for buyers and may initially slow upward momentum.

A confirmed breakout above 15 would shift focus to the 17 level, which marks a major resistance zone. This area was last seen as a significant turning point in May 2025, increasing its technical importance and the likelihood of selling pressure re-emerging there.

On the downside, failure to hold above 12 could result in sideways movement between 12 and 15, as the market digests recent gains. Below that range, the 10 level remains a very strong support, having proven resilient throughout much of 2025 and serving as a longer-term structural floor.

Chainlink price target

With LINK currently holding above key support and supported by improving market sentiment, the short-term bias leans cautiously constructive. A sustained move above 15 could open the door toward 17, while continued acceptance above 12 remains crucial for maintaining this setup.

Should momentum fade, the broader structure still suggests downside may be limited by historically strong support, keeping the medium-term outlook subtly tilted toward the buy side rather than outright weakness.