Chainlink Tests Key Support as Rally Defies Exchange Supply Patterns

Chainlink's recent rally has broken its usual price movement pattern, particularly in relation to exchange supply. Unlike previous rallies, the altcoin's surge above $15 from a trading range between $7 and $10 did not correspond with a spike in exchange reserves. Instead, LINK reserves have remained stable between 124 million and 130 million, far below the record high of 190 million at the start of 2024. This suggests that the rally occurred without the typical increase in supply that usually accompanies price increases, potentially limiting selling pressure and supporting the token's structural integrity.

The next critical test for LINK is whether it can regain short-term momentum past its recent trading range of $14.15, $14.60. The price briefly reached $15.60 before dropping toward $13.30, but buyers successfully defended the $13.58 support level, allowing a rebound toward $14.00. Holding this level is crucial, as it maintains the rising trendline and keeps the path open for another attempt toward $15.60. A breakdown below $13.58, however, could expose LINK to further downside pressure.

LINK is now targeting the $14.40 liquidity zone, which could determine its next short-term move. A bounce off the 13.75-13.80 demand zone has pushed the price toward $14.00, with the strongest liquidity concentration between $14.25 and $14.40. A push into this range could trigger forced buying via short liquidations, accelerating momentum toward higher targets. However, maintaining support above $13.80 is essential to keep this liquidity path available. If LINK fails to hold this level, selling pressure could drive the price down toward the $13.60, $13.50 support zone.