- Chainlink holds above its long-term trendline and 200-day MA, signaling strength despite a 58% pullback from the $30 peak.
- RSI resets to pre-breakout levels as trading volume cools, hinting at a potential higher low near critical support.
- LINK consolidates within a major demand zone at $10.50–$12.50, where historical buyer interest has repeatedly emerged.
Chainlink (LINK) has pulled back nearly 58% from its $30 peak and now trades near $12.74. Price action shows the asset testing a year-long ascending trendline that has defined its broader bullish trajectory.
RSI Resets to Key Levels as Market Eyes Higher Low
Despite the sharp retracement, LINK remains well above its mid-2023 low near $5. The asset now sits at a confluence of support levels, including the 200-day moving average, ascending trendline, and historical demand zones. RSI also aligns with levels that have triggered reversals in the past.
Market analyst Seth on X observed that LINK’s RSI has reset to levels seen before its October 2023 breakout. He highlighted that the price is hovering above $12.70, a potential higher low relative to past structure. His findings revealed that this area has historically prompted strong buyer reaction during previous corrections.
Source: Seth
Tracking market behavior, he pointed out a critical shift in sell-side pressure, noting that volume has steadily declined during the correction phase. He emphasized that the $10.50 to $12.50 zone overlaps with a prior bullish order block, reinforcing its significance as a long-term support base. Failing to hold this level may open the door to deeper retracements toward $10.50.
Examining liquidity shifts, Seth showed that the March 2023 trendline continues despite a series of lower highs. The 200-day moving average, currently at around $12.45, continues to be dynamic support. RSI readings below 40 signal oversold levels near bounce points.
Market Volume Drops as LINK Consolidates Below Key Resistance
According to CoinMarketCap, LINK trades at $12.74 with a daily volume of $50.6 million, reflecting reduced participation. Market capitalization is $7.5 billion, down significantly from the November peak. Liquidity depth has narrowed but remains stable above mid-2023 levels.
Source: CoinMarketCap
Examining trading volume fluctuations, price action confirms that LINK is consolidating just above major support. Despite declining momentum, the macro trend remains intact while RSI indicators approach reactionary levels. The price trades at a technically significant juncture defined by multiple overlapping supports.
