LINK Price Has Emerged as a Focal Point for Crypto Analysts as the Token Approaches Critical Technical Levels

Chainlink price has emerged as a focal point for crypto analysts as the token approaches critical technical levels that could determine its near-term direction.

Crypto analysts are closely monitoring Chainlink price as the token approaches critical technical levels that could decide its direction. Not to mention, the development activity on the project has been a key focus for investors.

Recently, Chainlink price rose above $16 on May 23, testing the descending trendline that has capped price action since late 2023.

Analysts are now looking for a breakout above $17.20 to continue toward the next key resistance at $19.50.

The chart structure shows price bottoms have been getting higher since April, indicating growing support levels. A bullish divergence pattern has also formed, with the asset confirming a lower-high structure that could signal trend reversal.

However, price action has stalled at the trendline, and a close below $14.50 could negate the bullish thesis.

The post Chainlink price stalls at key trendline as technicals favor LINK buyers appeared first on CryptoAvenue.

Chainlink price has stalled at a key trendline, presenting a critical juncture for LINK buyers to continue the breakout toward higher targets.

Technical analysis indicates the token is pushing against a descending trendline that has been pivotal in recent price movements.

As seen on the LINK/USD chart by CryptoWazrd, a breakout above the trendline, placed around $17.20, is needed to propel prices toward the next resistance at $19.50.

The chart structure shows price bottoms have been getting higher since April, presenting a bullish divergence pattern as the asset confirms a lower-high structure.

This signals a potential trend reversal from the multi-month downtrend that LINK began in early 2025.

Credit: Benzinga

Earlier this year, Chainlink reached a low of $10.07 before bouncing back significantly. The token has now pulled back from the $16.00-$16.20 range, which offers key support in the near term.

From a technical perspective, LINK has recovered from the $12.50 low and broke out of a falling wedge pattern. The market is currently consolidating near resistance levels with narrowing volatility.

Analyst Crypto Avi identified a descending broadening wedge formation on the daily chart. This pattern often signals reversal potential, with LINK testing the $16.50 region that previously acted as strong resistance.

A breakout from this wedge could produce a 40-30% rally, potentially pushing LINK toward the $25-$26 price range. The pattern’s convergence with higher lows and increasing volume further supports the bullish reversal thesis.

LINK Daily Technical Outlook:$LINK closed strongly bullish, testing the Daily lower‑high trend line. One more healthy bullish Daily candle will introduce an impulsive move towards the $19.50 resistance 🧙‍♂️pic.twitter.com/zW69i6DwuO— CRYPTOWZRD (@cryptoWZRD_) May 23, 2025

RSI indicators are seen rising but remain below overbought conditions. The MACD shows positive divergence while the 20-day EMA has crossed above the 50-day EMA.

BBPower also turned positive at 0.92, marking the first such reading since mid-February. This shift indicates buying pressure is currently outweighing selling activity.

In other developments, Chainlink has been a leading project in Real World Asset development activity over the past 30 days according to Santiment data.

The project recorded more Github contributions and commits than ATOM, XLM, IOTA, INJ and ATOM combined.

This leadership stems from ongoing work on Chainlink’s Cross-Chain Interoperability Protocol and Proof of Reserve systems. These protocols help transfer tokens and integrate assets that exist outside blockchain networks.

The frequent contributions highlight the momentum behind the project as institutions increasingly adopt tokenized products.

This pushes a greater need for oracle systems to provide price feeds and facilitate cross-chain connections.