Chainlink (LINK) Faces Crucial Resistance at $15.25 in May 2025

Chainlink (LINK) entered May 2025 trading near the $14.70 level, attempting to stabilize after a volatile April. Despite breaking out of a descending trendline, LINK continues to face significant resistance near $15.10–$15.25. The price action across daily and intraday charts signals a potential breakout or breakdown, depending on how key support zones hold in the coming weeks.

LINK is currently hovering near the 0.618 Fibonacci retracement level at $14.71, drawn from the $30.92 high to the $8.12 low. This zone has historically been a pivot for strong reversals. The bullish attempt to defend this level could provide the base for a rally towards the 0.5 Fib level at $19.52. Support at $13.80–$14.00 has been tested multiple times, while resistance remains near $16.80 (0.618 Fib). A weekly close above $16.80 could push LINK toward the $19.50 and $22.20 zones. However, failure to hold $14.00 might expose the token to a drop towards $13.00 and possibly even $10.80 (historical support).

The daily chart shows a descending trendline breakout in late April, signaling a potential reversal. However, price action has stalled at the $15.20 resistance zone. The horizontal grey resistance box is acting as a ceiling, while the green zone between $13.90 and $14.20 is critical support. Immediate resistance is at $15.20, with key support at $13.90. A breakdown below $13.90 could invite selling pressure to $12.80. A successful breakout above $15.20 would open the door to a retest of $16.80. On the downside, a break below $13.90 may trigger panic selling towards $12.80.

The 4-hour timeframe shows a symmetrical triangle pattern forming, with converging trendlines. The price has bounced from support near $14.50 and is struggling to break above $15.10. The trendlines suggest that a breakout is near. The bullish breakout zone is $15.10–$15.30, while the bearish support zone is $14.50–$14.00. Traders should watch for a decisive move beyond this range to confirm the next short-term trend.

LINK is trading around its 20, 50, and 100 EMAs on the 4H chart, with the 200 EMA at $14.17 acting as the next major support. The RSI stands at 50.00, indicating neutral momentum with no clear trend bias. If the RSI rises above 60 and price holds above all EMAs, it could be a bullish sign. A dip below 45 could indicate incoming downside pressure.

Bollinger Bands are narrowing on the 4H chart, signaling a squeeze phase and potential volatility spike. The MACD has just made a bullish crossover above the zero line, but the histogram remains flat. These indicators suggest the market is waiting for a catalyst to pick a direction.

Chainlink (LINK) is at a technical inflection point. With a breakout structure on the daily chart and tightening price action on lower timeframes, May 2025 could witness a decisive move. A bullish breakout above $15.30 would target the $16.80–$19.50 zone. On the flip side, a breakdown below $13.90 might bring renewed selling pressure. Until a directional breakout occurs, expect choppy range-bound trading.