Market Weakness Offsets Positive Network Development as LINK Tests Demand Zones
Chainlink’s token, LINK, declined sharply even after a major development involving Coinbase’s new bridging framework. While the market reacted negatively in the short term, several structural indicators on the chart suggest that the asset may be entering a potential bottoming phase. Traders are now evaluating whether current price behavior represents exhaustion or the early stages of accumulation.
The recent reveal that Coinbase integrated Chainlink services into its multi-billion dollar bridging upgrade introduced a strong fundamental catalyst. However, broader risk-off sentiment across the crypto market overshadowed the announcement, pushing LINK lower. The token retreated into a well-defined daily demand zone near the 12–13 USDT range, an area that previously triggered strong upside reactions.
Multiple structural elements point to a possible stabilization. The market repeated Change of Character (CHoCH) signals followed by Break of Structure (BOS) events, which often indicate shifting momentum. Furthermore, the price has returned to a region marked by equal lows, a classic area where liquidity accumulates before a trend reversal. The consolidation occurring here suggests that sellers may be losing momentum.
At the same time, several overhead supply blocks remain intact. Key resistance stands around 15–16 USDT, followed by a broader zone near 18–20 USDT, which aligns with prior breakdown levels. These remain hurdles for any sustained bullish recovery.
While LINK is trading lower despite positive ecosystem news, the technical landscape implies growing potential for a mid-term bottom. The market will look for a decisive break above short-term structure to confirm any shift toward a bullish trend.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.