Technical Analysis of Chainlink (LINK) on May 21, 2025: Key Levels and Trends

Technical analysis of LINK on May 21, 2025, exploring support, resistance, and indicators.

The technical analysis of Chainlink (LINK) on May 21, 2025, suggests a cautiously bullish trend, dependent on maintaining key support levels and breaking resistances. Currently, LINK is trading within an ascending channel on the daily timeframe and has managed to hold critical support zones. Key support levels are identified in the ranges of $14.6–$15.35 and $12.7–$13.8. These levels have been tested multiple times in the past, showing positive price reactions. If the price revisits these zones and forms strong bullish candles, it could indicate increased buying pressure and demand. Major resistance levels are noted at $16.95, $17.95, and $19.11. Breaking these levels with high trading volume could confirm the continuation of the bullish trend. Currently, the price is near the 50-day SMA around $15.5, which acts as a dynamic key level. Maintaining the price above this moving average signals buyer strength, while a break below could lead to a price decline. From an indicator perspective, the Relative Strength Index (RSI) on the daily timeframe is between 50 and 60, indicating a mild bullish signal. This range suggests the market is neither overbought nor oversold, leaving room for further upward movement. The MACD indicator shows a bullish crossover, with the MACD line crossing above the signal line, signaling strengthening bullish momentum. However, recent trading volume indicates a gradual increase, requiring further confirmation through heightened buying activity. A notable pattern on LINK’s chart is the formation of a bullish flag following a breakout from a multi-year symmetrical triangle. This pattern typically leads to a strong upward move, provided the price can break the $16.95 resistance. If this breakout occurs, the next targets could be $19.11 or even $22. However, if the price falls below the $14.6 support, a retreat to lower levels like $12.7 is possible. The recommended trading strategy involves entering at support levels with a defined stop-loss and waiting for resistance breaks confirmed by volume. Monitoring candlestick patterns, such as bullish reversal candles at support zones, can provide useful entry signals. Traders should pay attention to volume changes and price behavior near key levels, as these factors can determine the market’s next direction. Overall, based on market data and indicators, LINK’s short-term outlook is cautiously bullish. Holding key supports and breaking resistances could drive LINK toward higher targets, but traders should remain vigilant and prioritize risk management.