Ted Hisokawa
Jul 25, 2025 02:09
LINK trades at $17.80 after a 3.21% daily decline, pulling back from recent highs above $19. Technical indicators suggest bullish momentum remains intact despite the correction.
Quick Take
• LINK currently trading at $17.80 (-3.21% in 24h)
• Chainlink’s RSI holds neutral at 61.73, indicating room for further upside
• Recent breakout above $19 signals potential trend reversal from double bottom pattern
What’s Driving Chainlink Price Today?
The LINK price is experiencing a natural pullback after surging past the $19 mark just four days ago, marking a significant 19% rally that broke above long-term Gann arc resistance. This correction appears healthy following the substantial breakout, as profit-taking behavior typically emerges after strong moves.
The recent surge indicated a potential trend shift for Chainlink, with price action entering an upward arc path that aligns with a double bottom reversal structure forming above the $14 zone. This technical development suggests the market has shifted from bearish to bullish sentiment, even as today’s decline tests the resolve of buyers who drove the initial breakout.
Current trading volume remains robust at $78.7 million on Binance spot, indicating continued interest despite the pullback. The 24-hour range of $17.15 to $18.69 shows Chainlink is finding support above key technical levels.
LINK Technical Analysis: Bullish Signals Emerge Despite Pullback
Chainlink technical analysis reveals that despite today’s decline, the overall structure remains constructive. The LINK RSI at 61.73 sits comfortably in neutral territory, avoiding overbought conditions that could signal deeper corrections. This positioning suggests Chainlink has room to move higher without encountering immediate momentum exhaustion.
The moving average structure strongly favors bulls, with LINK trading above both the 50-day SMA at $14.65 and the 200-day SMA at $16.09. More importantly, the 7-day SMA at $18.67 is providing dynamic resistance, while the 20-day SMA at $16.57 offers nearby support.
Chainlink’s MACD histogram shows a positive reading of 0.0753, confirming bullish momentum remains intact. The MACD line at 1.2437 trading above its signal line at 1.1684 reinforces this upward bias. However, the stochastic oscillator shows %K at 55.56 below %D at 59.61, suggesting short-term momentum may need to rebuild.
The Bollinger Bands position reveals LINK trading at 0.6561 of the band width, indicating the recent move has room to reach the upper band at $20.50 without becoming extremely overbought.
Chainlink Price Levels: Key Support and Resistance
Based on Binance spot market data, Chainlink support levels are clearly defined. The immediate support sits at $17.88, which aligns with the current pivot point. A break below this level could see LINK testing stronger support at $16.57, coinciding with the 20-day moving average.
More significant Chainlink support levels emerge at $13.10 and $10.94, representing the major support zones that bulls must defend to maintain the bullish structure. The $13.10 level corresponds closely to the double bottom formation that preceded the recent breakout.
On the upside, LINK resistance faces its first test at $20.28, which represents both immediate and strong resistance according to technical calculations. A decisive break above this level could open the path toward retesting the 52-week high at $29.26, though intermediate resistance may emerge around the Bollinger Band upper limit at $20.50.
The current daily ATR of $1.13 suggests normal volatility for LINK, providing traders with reasonable risk parameters for position sizing.
Should You Buy LINK Now? Risk-Reward Analysis
For aggressive traders, the current LINK price offers an attractive entry point near support with a clear risk-reward setup. Setting stops below $16.57 provides protection while targeting the $20.28 resistance offers a favorable 2:1 ratio.
Conservative traders might wait for a retest of the $16.57 support level or a break above $19 to confirm the bullish structure remains intact. The LINK/USDT pair shows sufficient liquidity for both entry strategies.
Swing traders can consider dollar-cost averaging between current levels and $16.57, given the strong technical foundation and recent breakout confirmation. However, managing position size remains crucial, as cryptocurrency markets can experience rapid reversals.
Risk management should focus on the $13.10 level as a major support breakdown point. Any close below this level would invalidate the bullish thesis and suggest deeper corrections toward $10.94.
Conclusion
The LINK price pullback from recent highs appears corrective rather than reversal-based, with technical indicators supporting continued upside potential. Traders should monitor the $17.88 pivot level for immediate direction, while the broader bullish structure remains intact as long as Chainlink holds above $16.57. The next 24-48 hours will be crucial in determining whether buyers can defend current support levels and resume the upward trajectory toward $20.28 resistance.
Image source: Shutterstock
