Key Takeaways
After a rough start to 2025, LINK finally showed signs of life on March 11, creating several higher lows and attempting a breakout.
Last week changed everything. Instead of breaking out, LINK broke down from its support trend line, invalidating the bullish formation.
Now, with only minor support standing between single-digit LINK, all eyes are on the price action to see if Chainlink can prevent another breakdown in April.
LINK Price Bounces
The LINK price has decreased inside a descending parallel channel since December 2024.
As predicted at the start of March, LINK bounced at the channel’s support trend line (green icon) and started an upward movement.
Despite its increase, Chainlink failed to move above the channel’s midline. Instead, it fell after a rejection last week (black circle).
Technical indicators give mixed readings. The Relative Strength Index (RSI) created a bullish divergence (orange) before the upward movement.
The Moving Average Convergence/Divergence (MACD) did the same and increased toward 0.
However, the RSI broke its divergence trend line while the MACD failed to cross into positive territory.
Considering that LINK trades in the channel’s lower portion, it is unclear if the trend is bullish or bearish.
New LINK Lows in April?
The wave count gives a bearish LINK prediction, indicating that the price will create new lows in April.
The count shows a five-wave decline since the cycle high. Last week’s rejection (black circle) creates a descending wedge instead of a channel.
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The wedge signals that the downward movement is a leading diagonal, which will be complete after another decline.
Chainlink also broke down from a short-term ascending support trend line (dashed), losing its bullish structure.
Another sign of a bearish trend is the upward movement leading to the correction, which has an A-B-C structure (green).
The LINK price will likely fall in April, reaching the wedge’s support trend line at $9.60.
Afterward, it could begin a significant retracement in response to the downward movement.
Bearish Trend Ahead
The Chainlink price has fallen since its cycle high in December 2024. Despite a bounce on March 11, LINK invalidated its bullish structure last week.
All signs point to the continuation of the LINK decline in April, taking the price toward the next closest support at $9.60.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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