2 reasons why Chainlink (LINK) might be bottoming out

Is Chainlink in an optimal accumulation zone?

The cryptocurrency market is going through a turbulent patch, but Chainlink (LINK) refuses to capitulate. Currently trading around $8.76, the asset has recorded a 3.47% bounce over the last 24 hours. This recovery comes after a grueling bearish streak of four consecutive days.

However, behind this apparent price weakness, the story is much deeper. Technical analysis reveals that the token is following the same trend as in the previous cycle, with a bearish 1-week CVD divergence at the top and a bullish divergence appearing in the bottom accumulation zone.

Nevertheless, the ADX (Average Directional Index) indicator has dropped to 14.43, signaling a lack of directional momentum. This dead calm could merely be the prelude to a storm, especially since the network’s fundamentals remain solid.

Based on the previous cycle, LINK could remain in this price zone at the POC level for several months, until October 2026, before seeing a potential breakout.

Are whales secretly accumulating LINK on a massive scale?

The primary reason for this optimism lies in on-chain data. A massive drop in exchange reserves has been recorded, with the withdrawal of 331,000 LINK in just 48 hours. Such a decrease in available supply is a classic signal of whale accumulation, drastically reducing selling pressure.

In the derivatives market, the trend is equally striking. The liquidation map shows a concentration of interest between $8.60 and $8.83. Traders are heavily overleveraged to the upside, accumulating over $938,000 in long positions compared to just $268,000 in short positions.

This glaring imbalance propels the Long/Short ratio to 1.06, its highest level in a month. Speculators are betting heavily on a short-term rise, anticipating that the current retracement is merely a buying opportunity before the next impulse.

This imbalance also poses a risk of a rapid downward candle below $8 in order to liquidate these longs.

Can the Chainlink (LINK) price break the $10 resistance this year?

If the current momentum holds and the $8.19 support remains unbroken, Chainlink could validate an extremely bullish scenario. Technical projections suggest a potential jump of 14.50%, which would propel the price straight toward the major resistance at $10.08. Such a move would confirm the strength of the ascending channel. It would also liquidate a strong cluster of shorts, as indicated by the heatmap.

Conversely, a break below this critical level would invalidate the bullish structure and expose the token to a new correction toward the demand zone between $7 and $5. However, momentum indicators like the RSI or the MACD indicate that the bottom is closer than ever.

While massive withdrawals from exchanges and the fierce appetite of derivatives traders outline an explosive setup, the question remains. Is this the ideal time to position oneself before a new Chainlink rally, or does the market have one last bear trap in store for us?

Should you buy?

To conclude, Chainlink (LINK) remains one of the most solid projects in the crypto ecosystem thanks to its essential role as a decentralized oracle. With its CCIP (Cross-Chain Interoperability Protocol), it facilitates secure transfers between blockchains and is rapidly gaining institutional adoption: Coinbase uses it for its wrapped assets, while Swift and several major banks (JPMorgan, UBS, etc.) are testing or deploying Chainlink-based solutions for real-world asset (RWA) tokenization and cross-border payments.

In the short term, LINK is suffering like most altcoins during this phase of Bitcoin dominance and massive dilution, but it stands out as a high-quality safe-haven infrastructure.

In the longer term (2027-2029), if the RWA narrative and interoperability explode with the next bull run, Chainlink has serious potential to break its ATH and target much higher zones, around $100, thanks to its real-world utility and dedicated technical community. It is therefore a conviction play rather than a short-term speculative trade.

Sources:

• AMBCrypto
• Tradingview
• Cryptoquant
• Coinglass
• MMT

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