Key Takeaways
- LINK has returned to its key demand zone at $7.20–$8.10.
- Price is trading inside a descending broadening wedge on the weekly chart.
- A similar setup in August 2024 led to a 107% rally after reclaiming the 50-week MA.
- Reclaiming $15.97 (50-week MA) would confirm reversal strength.
- A break below $7.20 would invalidate the bullish thesis and expose LINK to deeper downside.
The broader altcoins crypto market has faced heavy selling pressure over the past 30 days, with Ethereum (ETH) sliding more than 32%, keeping downside pressure firmly on major altcoins.
Among them, Chainlink (LINK) has been particularly weak — also dropping over 32% during the same period. But beneath the surface, this pullback has brought LINK back into a major long-term demand zone, an area that could decide the token’s next macro move.
LINK Revisits Critical Demand Zone
On the weekly chart, LINK is trading inside a large right-angled descending broadening wedge — a structure that has guided price action since late 2023.
Each major rally has been capped by the rising long-term resistance trendline, most recently rejecting price from the August 2025 high near $27.87. That rejection sent LINK sliding back into its multi-year support band around $7.20–$8.10, the same zone that marked previous cycle lows.
Historically, this area has acted as a macro accumulation range, where long-term buyers tend to step in aggressively.
A Familiar Fractal Is Emerging
What makes the current setup especially interesting is a mini fractal forming inside this larger structure.
Back in August 2024, LINK followed a very similar path:
- Price was rejected from overhead resistance (yellow/red zones on the chart)
- LINK failed to hold the 50-week moving average
- It then bottomed in the $7.20–$8.10 demand zone
- A reclaim of the 50-week MA triggered a powerful 107% rally
Fast forward to now, and LINK is once again:
- Sitting on the same $7.20–$8.10 support
- Trading below the 50-week MA
- Showing early signs of stabilization near historical demand
Structurally, this looks like a potential replay of the previous bottoming phase.
What’s Next for LINK?
If this fractal continues to play out, a successful defense of the $7.20–$8.10 zone could spark a relief bounce.
The first meaningful confirmation would be a reclaim of the 50-week moving average near $15.97 — a move that would signal trend stabilization and renewed bullish control.
If LINK can clear that level, the door opens for a broader upside leg, especially if overall crypto market sentiment continues to improve.
Simply put: holding this demand zone keeps LINK’s recovery narrative alive.
Key Risk to Watch
On the flip side, a decisive breakdown below $7.20 would invalidate this reversal thesis entirely.
Losing this multi-year base could drag LINK toward the $5.74 region and likely delay any meaningful recovery.
For now, however, buyers appear to be stepping in right where they did before.
Disclaimer: The views and analysis presented in this article are for informational purposes only and reflect the author’s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and may or may not yield the anticipated results. Investors are advised to exercise caution, conduct independent research, and make decisions aligned with their individual risk tolerance.
About Author: Nilesh Hembade is the Founder and Lead Author of Coinsprobe, with over 5 years of experience in the cryptocurrency and blockchain industry. Since launching Coinsprobe in 2023, he has been providing daily, research-driven insights through in-depth market analysis, on-chain data, and technical research.
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