Chainlink on May 26, 2025: Is a Bullish Breakout Imminent?

Analysis of Chainlink on May 26, 2025, focusing on Solana partnership, TVL growth, and price trends

On May 26, 2025, Chainlink (LINK), a leading oracle provider in the crypto space, garnered attention due to new developments and price movements. LINK traded between $15.2 and $15.5, reflecting a 2.3% increase over the past 24 hours. These price dynamics were driven by factors such as a new Solana partnership, growing total value locked (TVL), and technical patterns. A major highlight was Chainlink’s expanded partnership with Solana through the launch of the Cross-Chain Interoperability Protocol (CCIP). This integration enables Solana’s DeFi protocols to access Chainlink’s oracle data, boosting demand for LINK. The move reinforces Chainlink’s dominance in the oracle space, with its oracles securing over 68% of the total oracle TVL in the market. The growth in Chainlink’s TVL was also significant. The total value locked in protocols reliant on Chainlink surpassed $66 billion, marking a 4% increase over the past week. This growth is attributed to the rising adoption of CCIP on non-EVM blockchains like Solana and integrations with platforms such as Jupiter and Kamino. Technically, LINK is forming a descending wedge pattern on the daily chart, often interpreted as a precursor to a bullish breakout. After testing the $15 support, the price moved toward the $16 resistance. The MACD indicator suggests fading bearish momentum, but low trading volume could indicate market hesitation. Breaking the $16 resistance could push prices to $20, while a failure to hold $15 might trigger a correction to $14. Fundamentally, a recent report highlighted Chainlink’s leadership in development activity among Ethereum-based projects, with over 530 GitHub updates in the past month. This underscores the team’s commitment to enhancing the network. However, delays in SEC approval for crypto ETFs until late 2025 and geopolitical tensions could pose challenges. Whale activity was notable, with 12 million LINK units, worth approximately $190 million, moved to cold wallets, signaling long-term investor confidence. However, selling pressure at the $16 resistance could introduce volatility. Overall, Chainlink shows short-term bullish potential, but investors should remain cautious of key resistances and regulatory risks. Risk management and close market monitoring are crucial for informed investment decisions.