Chainlink (LINK) has had a volatile start to 2025, struggling to maintain momentum despite early signs of recovery in March. After bouncing from a key support level on March 11 and attempting a breakout, the token failed to sustain its bullish structure. Instead, LINK experienced a sharp downturn, breaking below its ascending support trend line and invalidating its bullish formation. Now, as LINK hovers near crucial support levels, traders brace for further downside movement in April.
LINK Price Struggles Amid Market Uncertainty
Since December 2024, LINK has been trading within a descending parallel channel, consistently making lower highs. While the token briefly rebounded in early March, it failed to breach the channel’s midline, leading to a rejection and subsequent decline last week.
Technical indicators present mixed signals. The Relative Strength Index (RSI) initially formed a bullish divergence, hinting at a potential uptrend. The Moving Average Convergence Divergence (MACD) indicator also showed signs of reversal, approaching the neutral zone. However, these bullish signals have since weakened—the RSI broke below its divergence trend line, while the MACD failed to cross into positive territory, further reinforcing bearish sentiment.
Is LINK Headed for Single Digits?
The wave count analysis suggests that LINK is in the final stages of a five-wave decline that began after its December 2024 high. Last week’s rejection confirmed the formation of a descending wedge rather than a parallel channel, signaling that the downward trend could intensify.
Additionally, LINK has lost support from a short-term ascending trend line, breaking its bullish structure. The recent correction follows an A-B-C pattern, further indicating a continuation of the downtrend.
With LINK currently trading in the lower portion of its channel, the next critical support level stands at $9.60. If bears maintain control, Chainlink could test this level in April before any significant recovery attempts.
Bearish Outlook for April
Despite previous attempts at recovery, LINK’s bearish structure remains intact. Unless the token reclaims key resistance levels, further declines are likely. Traders will closely monitor price action in the coming weeks to determine whether Chainlink can stabilize or if another leg down is imminent. For now, caution remains the prevailing sentiment among investors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Chainlink (LINK) Whale Activity Surges: Is $30 Within Reach or Will Bears Take Over? Analyst
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
