While Chainlink’s native token LINK was testing a support zone that is considered critical for direction determination in the short term, all eyes in the market turned to whether this level could be maintained. LINK was traded at $7.29 at press time. The asset’s 24-hour trading volume was recorded at $171.54 million and its market value at $5.3 billion. Although the decrease in the last 24 hours is 1.72%, the price structure and accumulation data keep the possibility of a possible recovery on the agenda.
Support level may determine short-term direction
Cryptocurrency analyst Alpha Crypto Signal stated that LINK gave back its recent recovery following the inverted V-type reversal on the daily chart. This move erased a significant part of the gains made by the previous sharp rise and strengthened the cautious outlook in the market.
LINK is currently testing a horizontal neckline support, which is considered critical. This area, which traders closely monitor, has become even more important due to increasing sales pressure. It is considered that if the support is maintained, the price may make a relief movement towards the $ 8.64 resistance.
Alpha Crypto Signal stated that LINK tested the critical neckline support on the daily chart, maintaining this level could pave the way for a reaction rise towards $8.64, while a downward break could strengthen the downward trend.
On the other hand, if it falls below this level at the daily close, the technical outlook may turn in favor of the sellers. In such a scenario, the possibility of the current market structure weakening and losses deepening comes to the fore.
New LINK purchase came to the fore in reserves
Despite the pressure on the price front, Chainlink added 593,088 LINK to its reserves in June. It was announced that the total value of this purchase was over 4.6 million dollars. With the latest addition, the Chainlink Reserve balance reached 4,504,167 LINK.
Chainlink is known for its oracle infrastructure that carries non-blockchain data into smart contracts. The protocol is being carefully monitored for its reserves growth, ecosystem improvements and long-term financial resilience.
Mini dictionary: Oracle is the infrastructure that enables blockchains to securely access external data sources. Chainlink is one of the most widely used networks in this field, involved in decentralized finance, tokenized real-world assets and cross-chain applications.
The increased reserve size supports expectations that Chainlink is preparing for growth in decentralized finance, tokenized real-world assets, and cross-chain infrastructure. The company’s approach to strengthening its treasury structure is considered a sign of confidence in its long-term strategy.
The market remains cautious
However, despite reserve accumulation and positive technical scenarios, the pressure on the LINK price has not completely disappeared. The cautious trend seen in the broader cryptocurrency market and Bitcoin’s sideways trend are among the main factors limiting LINK’s upward moves.
Therefore, whether the technical support zone can be maintained in the short term will be decisive in terms of both the recovery capacity of the price and the direction of market sentiment. Investors are watching the $8.64 resistance on one hand, and the risk of closing below support on a daily basis, on the other.
