Chainlink (LINK) Technical Analysis on July 31, 2025: Will the Rally Continue?

Technical analysis of LINK on July 31, 2025, exploring support/resistance zones, indicators, and market trends.

Chainlink (LINK) has long been a cornerstone of the crypto world, known for its role as a decentralized oracle network powering smart contracts. As of July 31, 2025, LINK is trading around $17.80, showing signs of a strong bullish trend. But can this momentum carry LINK to new heights? In this technical analysis, we’ll dive into its price action, key support and resistance levels, and popular indicators to map out what might lie ahead for this cryptocurrency. Price Structure and Market Trend Since mid-2025, LINK has been moving within an ascending channel, forming higher lows that signal sustained buyer strength. The price recently bounced off the $16.20 support level and is now eyeing the critical $19.30 resistance. This level has historically capped upward moves, making it a pivotal point for LINK’s next move. Why does this matter? A clean break above $19.30 could spark a new bullish wave, potentially pushing LINK toward higher targets. However, if the price gets rejected, we might see a pullback to $17.00 or even $16.20. Trading volume will be crucial here—rising volume near $19.30 would strengthen the case for a breakout. Insights from Technical Indicators The technical indicators offer a clear view of LINK’s current state. The Relative Strength Index (RSI) on the daily timeframe sits around 60, indicating bullish momentum but not yet in overbought territory above 70. This suggests LINK has room to climb, though traders should stay cautious, as nearing 70 could hint at a potential correction. Moving averages back up this bullish outlook. The 50-day moving average (MA50) at around $16.20 has acted as dynamic support, holding the price steady over the past few weeks. The 200-day moving average (MA200) at roughly $14.00 serves as a strong long-term support. If the price slips below the MA50, the MA200 could step in to prevent deeper declines. Trading Volume and Market Sentiment A notable surge in trading volume during recent price jumps reflects strong investor interest in LINK. This is likely fueled by recent developments in the Chainlink ecosystem, such as the expansion of its CCIP protocol and new partnerships with financial institutions. That said, a sudden drop in volume could signal weakening momentum, so it’s worth keeping a close eye on this metric. Key Support and Resistance Levels - Support: The $16.20 level is a critical short-term support. If it fails, the $14.00–$14.20 zone, aligned with the MA200, could halt further declines. - Resistance: The $19.30 level is the main hurdle. Breaking it could open the door to targets at $20.00 or even $30.00 in the long term, provided volume and bullish patterns confirm. Trading Strategy and Future Outlook Given the current market setup, LINK seems poised to continue its upward trajectory in the short term, but traders should brace for potential volatility. A smart approach might be to enter near the $16.20 support with a stop-loss below $15.80. For conservative traders, waiting for a confirmed breakout above $19.30 could offer a safer entry point. Can LINK hit new peaks? It all depends on how the price behaves in the coming weeks. If volume stays strong and indicators remain supportive, higher levels are within reach. But let’s not forget—crypto markets are full of surprises, and managing risk is key to staying ahead. Wrapping Up As of July 31, 2025, Chainlink is in an exciting spot. With a solid bullish structure and reliable supports, it has the potential for further gains, but the $19.30 resistance will be a tough test. Traders should monitor indicators, volume, and market developments closely while adjusting their strategies accordingly. If you’re thinking about jumping in, waiting for technical confirmation and sticking to a solid risk management plan can help you navigate the market’s twists and turns. The crypto world is always a wild ride, but with careful analysis, you can make the most of it.