Chainlink (LINK) Market Analysis – May 5, 2025
12-hour timeframe update
Current Overview: LINK is currently undergoing a corrective pullback, which appears to be a three-wave (ABC) structure from the swing high reached on April 25. Despite the downward movement, the pattern suggests it’s still part of a larger bullish structure.
Key Support Levels:
Primary Support: $12.58
This is the critical level. LINK needs to stay above this price to maintain the bullish structure. A break below could invalidate the uptrend scenario.
Retracement Level: 78.6% Fib retracement
Should hold during this correction to confirm the bullish outlook.
Entry Zone:
Buy Zone: $13.00 – $13.50
Look for signs of a reversal in this area, ideally supported by bullish candles and higher lows.
Targets:
Short-Term Target: $15.10 (break above May 1 swing high confirms upside momentum)
Medium-Term Target: $17.31 – $18.46
This is the area where wave C of 3 could potentially complete based on Fibonacci extensions.
Stop Loss:
Protective Stop: Below $12.50
A decisive break below $12.58 would be a strong invalidation signal for the bullish scenario.
Technical Outlook:
The move down is currently corrective, not impulsive, which is a positive sign.
A rally followed by a higher low (a classic 1-2 setup) would confirm that wave C to the upside is underway.
Watch for a break above $15.10 to signal stronger bullish continuation.
