Chainlink is re-testing the long-term main trend line that has acted as support for nearly two years. The price has pulled back to a high trading volume area, indicating that this area is where the market has historically agreed on value.
The momentum began to stabilize after a sharp corrective phase, and several time indicators are showing early signs of seller exhaustion. As long as LINK maintains this structural base, the setup favors a potential bounce back to the mid-range.
However, the loss of this support will open the door to the next minimum sized pocket, where liquidity becomes scarce and volatility increases.
This is an important moment for LINK: maintain the trend line and re-enter the range, or break and push into the lower demand area.