Chainlink (LINK) enters May 2025 trading near the $14.70 level, attempting to stabilize after a volatile April. Despite breaking out of a descending trendline, LINK continues to face significant resistance near $15.10–$15.25. The price action across daily and intraday charts signals a potential breakout or breakdown, depending on how key support zones hold in the coming weeks.
Weekly Chart: Testing 0.618 Fibonacci Support
LINK is currently hovering near the 0.618 Fibonacci retracement level at $14.71, drawn from the $30.92 high to the $8.12 low. This zone has historically been a pivot for strong reversals. The bullish attempt to defend this level could provide the base for a rally towards the 0.5 Fib level at $19.52.
- Support at $13.80–$14.00 has been tested multiple times.
- Resistance remains near $16.80 (0.618 Fib).
A weekly close above $16.80 could push LINK toward the $19.50 and $22.20 zones. However, failure to hold $14.00 might expose the token to a drop towards $13.00 and possibly even $10.80 (historical support).
Daily Chart: Descending Trendline Breakout, but Hesitation Persists
The daily chart shows a descending trendline breakout in late April, signaling a potential reversal. However, price action has stalled at the $15.20 resistance zone. The horizontal grey resistance box is acting as a ceiling, while the green zone between $13.90 and $14.20 is critical support.
- Immediate resistance: $15.20
- Key support: $13.90
- Breakdown below $13.90 could invite selling pressure to $12.80
A successful breakout above $15.20 would open the door to a retest of $16.80. On the downside, a break below $13.90 may trigger panic selling towards $12.80.
4-hour Chart: Range Tightening, Breakout Likely Soon
The 4-hour timeframe shows a symmetrical triangle pattern forming, with converging trendlines. The price has bounced from support near $14.50 and is struggling to break above $15.10. Also the trendlines suggest that a breakout is near.
- Bullish breakout zone: $15.10–$15.30
- Bearish support zone: $14.50–$14.00
Traders should watch for a decisive move beyond this range to confirm the next short-term trend.
EMA and RSI Analysis: Mixed Momentum
- LINK is trading around its 20, 50, and 100 EMAs on the 4H chart, with the 200 EMA at $14.17 acting as the next major support.
- RSI stands at 50.00, indicating neutral momentum with no clear trend bias.
If the RSI rises above 60 and price holds above all EMAs, it could be a bullish sign. A dip below 45 could indicate incoming downside pressure.
Bollinger Bands and MACD: Volatility Contraction in Progress
- Bollinger Bands are narrowing on the 4H chart, signaling a squeeze phase and potential volatility spike.
- MACD has just made a bullish crossover above the zero line, but the histogram remains flat.
These indicators suggest the market is waiting for a catalyst to pick a direction.
Chainlink (LINK) Price Forecast Table: May 2025
Price Scenario | Min Price | Avg Price | Max Price |
Bullish breakout | $15.30 | $16.80 | $19.50 |
Bearish breakdown | $12.80 | $13.40 | $14.00 |
Range-bound trend | $13.90 | $14.70 | $15.20 |
Conclusion: Decision Point Approaching
Chainlink (LINK) is at a technical inflection point. With a breakout structure on the daily chart and tightening price action on lower timeframes, May 2025 could witness a decisive move. A bullish breakout above $15.30 would target the $16.80–$19.50 zone. On the flip side, a breakdown below $13.90 might bring renewed selling pressure. Until a directional breakout occurs, expect choppy range-bound trading.
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