Chainlink, a key player in the cryptocurrency market, experienced volatile price movements in recent days. According to data from BraveNewCoin, LINK increased by 1.01% over the past 24 hours, but continued to trade below the crucial $10 threshold. The market capitalization of Chainlink reached $7.08 billion, with trading volume soaring to $238.28 million during the same period.
Sustained short-term selling pressure
Earlier this week, LINK managed to rise above $10.80, only to be pulled back sharply, settling around $9.73. Technical analysis indicates that after a steep drop on May 16, the price stabilized, fluctuating between $9.60 and $9.80. During this phase, selling pressure seemed to ease, but LINK failed to retest the $10 level.
The MACD indicator on the chart remains below its signal line and the histogram stays in negative territory, signaling that buyers have yet to gain control in the short term. In addition, while trading volumes surged during the sharp decline, they weakened noticeably afterward, hinting at market indecision.
Analysts comment on long-term accumulation
Analyst DongPham recalled marking the $5 to $9 range as an attractive entry point in the previous market cycle, noting that this zone remains above water. However, he admitted missing out on selling opportunities during the subsequent rally while chasing higher-than-expected profits.
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AAPLDongPham remarked, “LINK has formed a long-term base and could linger in this range before the next upward surge,” adding that the previous all-time high stands at $53.
A chart shared by DongPham highlights how Chainlink entered a prolonged corrective phase after its 2021 peak, now possibly beginning a fresh accumulation period in its current price band. According to his analysis, LINK could continue to trade sideways in this region for a while longer, with stronger moves delayed for the coming years.
Institutional view and potential trajectory
Another analyst, Quinten Francois, believes LINK holds significant potential for institutional investors. In his weekly analysis, he emphasized that LINK is trading in a long-term support zone between $9 and $10. Notably, previous price action in this area has led to rallies of 180% and 117%.
Francois notes that the weekly MACD indicator is beginning to signal an upward reversal, while the RSI stands at 42, suggesting early signs of a recovery from the bottom.
Nevertheless, Chainlink is still a long way off its all-time high of $52.70, remaining 81.54% below its peak price. Surpassing the $10 mark may offer hope in the short term, but a drop below $9.60 would indicate prolonged stagnation within this narrow band.
