Chainlink Technical Analysis on August 4, 2025: Will the Bullish Momentum Persist?

A technical analysis of Chainlink on August 4, 2025, exploring support, resistance, and indicators to forecast market trends.

Chainlink (LINK), the decentralized oracle network bridging blockchains with real-world data, has long held a unique spot in the crypto market. As of August 4, 2025, Chainlink is trading around $18.12, consolidating after a strong rally. Can LINK sustain its upward momentum, or is a deeper correction on the horizon? Let’s dive into the charts and indicators to map out its next move. Current Market Snapshot Chainlink is currently moving within an ascending channel, forming higher highs and higher lows. The price recently bounced from $16.50 and is now testing resistance near $19.20. The daily chart shows LINK challenging the upper boundary of this channel, with a 24-hour trading volume of about $450 million, signaling robust market activity. While this volume is slightly down from recent peaks, it still reflects strong trader interest. Could this momentum push LINK to new heights? Key Support and Resistance Zones The primary support zone lies between $16.50 and $17.78, with a critical level at $17.78, aligned with the 50-day moving average. A break below this could lead to a pullback toward $15.80 or even $14.70. On the upside, resistance levels at $19.20 and $22.05 are significant barriers. A breakout above these could propel LINK toward $24.00 or even $28.00. Some analysts believe clearing $19.20 could ignite stronger bullish momentum. Indicator Insights The Relative Strength Index (RSI) is hovering around 63, indicating mild bullish momentum but not yet in overbought territory (above 70). This suggests room for further upside, though traders should watch for signs of market fatigue. The MACD indicator shows a bullish crossover, with the MACD line above the signal line, supporting the uptrend. However, a potential divergence in RSI could signal waning momentum, so vigilance is key. Chart Patterns and Scenarios The 4-hour chart reveals an ascending triangle pattern, often a precursor to a bullish breakout. If LINK breaks the $19.20 resistance with strong volume, the next target could be $22.05. Conversely, a break below $17.78 might see prices retreat to $16.50. Some traders suggest LINK could sweep liquidity around $16.50 before resuming its uptrend. Is this pattern setting the stage for a major breakout? Broader Market Influences Beyond technicals, fundamentals play a role. Chainlink’s CCIP protocol and partnerships, like those in real-world asset tokenization, keep it at the forefront of blockchain adoption. Rising on-chain activity and speculation about broader LINK adoption could fuel bullish momentum. However, LINK’s correlation with the broader crypto market, particularly Bitcoin, means a market-wide correction could weigh on its price. Can LINK’s strong ecosystem shield it from market volatility? Trading Strategy For short-term traders, buying near the $17.78 support with a stop-loss below $16.50 could be a solid setup, targeting $19.20 or $22.05. Long-term traders might wait for a confirmed breakout above $19.20 to reduce risk. In crypto’s volatile landscape, risk management is crucial—never allocate more than you’re willing to lose, and always use stop-losses. Wrapping Up On August 4, 2025, Chainlink stands at a critical juncture. Key support at $17.78 and resistance at $19.20 and $22.05 will shape its next move. Indicators suggest a mildly bullish outlook, but traders should stay cautious and await trend confirmation. Will Chainlink soar to new heights? With disciplined risk management and attention to market signals, traders can navigate this dynamic oracle network’s opportunities with confidence.