Chainlink Price Analysis for March 5, 2025: Chainlink Rises from $13 to $16.5, Can it sustain the Momentum?

Chainlink price analysis has shown bullish momentum for the past two days after a crash in the price. It raises hope in the minds of investors and traders. Let’s explore what caused this Chainlink rise in price. Will it sustain itself in the longer timeframe, or is it just another bait for new traders and investors before crashing again? As we go through the Chainlink price analysis, we will determine the support, resistance, and possible future scenarios of Chainlink. Without further delay, let’s dive into the price action of Chainlink.

Chainlink Price Analysis of the Last 24 Hours

The price formed a converging triangle that broke out to the downside at 01:30 UTC. RSI dropped below the level of 30 at 01:35 UTC, indicating an oversold market situation. MACD showed a golden crossover at 02:40 UTC, suggesting a reversal or at least a pullback. The price pulled back and formed an expanding triangle pattern at 06:35 UTC. MACD showed a death cross, which posed a threat to the ongoing expanding triangle.

Chart 1: Analysed by vallijat007, published on TradingView, March 5, 2025

The expanding triangle pattern broke out to the downside at 07:00 UTC but failed to form a spike. Instead, it formed a range. The range broke out to the downside at 13:05 UTC, which was further corroborated by a death cross in MACD, but it failed to form a spike. Instead, the range gave birth to a converging triangle pattern, indicating another range.

Breakout or Reversal Ahead?

At 16:55 UTC, the price broke out to the upside from the converging triangle with a golden cross in MACD at the same time. This time, the price formed a spike and channel pattern. The channel broke out to the downside at 20:45 UTC but failed soon after, as it proved to be just a pullback in the ongoing uptrend. At 20:55 UTC, a death cross appeared in MACD, suggesting lower prices soon. At 01:30 UTC on 5th March 2025, Chainlink broke out to the upside of the channel and formed a range. 

The range also broke out to the upside at 06:45 UTC. At the same time, a golden cross appeared in MACD, and RSI moved above the level of 70, showing an overbought market; however, the price soon spiked. The spike was followed by a channel that pushed the price to the level of $16.5, marking a resistance level. If the price breaks the resistance level of $16.5, then the uptrend is intact, and the price may rise further. If it fails to rise above the resistance level, then the price may drop to the level of $15, which is the level of its recent range price movement.

Caution for Traders: Short-Term Chainlink Rise Within a Downtrend

As the price rises, new buyers come in and take positions without considering that this Chainlink rise is still within the downward channel in the higher timeframe. Traders and investors should be cautious in such a situation because, in a smaller timeframe, it seems that the price is shifting to the upside, but it is only a short-term movement. If the price continues to rise without much pullback, then it may reverse the higher timeframe trend, but the chances are low. If someone is already invested, this is a great price to book profit.

Chainlink price today remains volatile, and traders should monitor the key resistance and support levels. If the Chainlink price today sustains above its resistance, it could indicate further bullish momentum in the short term.