Chainlink Holds Key Support as Rally Defies Historical Patterns

Chainlink (LINK) has broken out of its previous trading range of $7 to $10, surging past $15 before pulling back to around $13.89. This rally has defied historical patterns, as exchange reserves for LINK have remained stable between 124 million and 130 million tokens, despite the price surge. Typically, rallies are accompanied by increased exchange supply, making more tokens available for sale. However, this time, exchange reserves sit near multi-year lows at approximately 124.3 million, significantly lower than the record high of 190 million at the start of 2024. This suggests limited selling pressure, which could support further price gains.

LINK is now testing key support levels, with $13.58 acting as a critical threshold. Holding above this level keeps the rising trendline intact and allows buyers to challenge the broken range again. A move above $14.15, $14.60 could signal renewed demand and reopen the path toward $15.60. Conversely, a breakdown below $13.58 could expose LINK to further downside, targeting the $12.80, $13.00 support zone.

Currently, LINK’s recovery is approaching a liquidity zone around $14.40, which could determine its next short-term move. A push into this zone could trigger forced buying via short liquidations, accelerating momentum toward higher targets. However, maintaining support above $13.80 is crucial for this scenario to play out. If LINK fails to hold this level, selling pressure could drive the price down toward $13.60, $13.50, where another liquidity pocket may attract buyers.