The broader cryptocurrency market has entered a challenging bearish phase, with Bitcoin recently sinking below the $70,000 mark, representing a loss of over 50% from its cycle highs. This downturn has not spared major altcoins, as Chainlink has faced significant declines, erasing most of its anticipated gains for 2024 and 2025. This development has led to mounting concerns that Chainlink’s price may revert back into the long accumulation phase seen in 2022 and 2023.
As the price continues to lose crucial support levels, traders are on high alert. They are closely monitoring whether the LINK price will venture into another period of extended accumulation or if this weakness indicates merely a short-term correction that could lay the groundwork for a stronger recovery.
Chainlink’s vulnerability has become increasingly apparent as it struggles under broader market pressures. After failing to maintain the $11–$12 support zone, LINK has experienced a downward slide, approaching a price range that previously marked its long consolidation phase during 2022 and 2023. As momentum wanes and buyers retreat, traders are left questioning the nature of the current price movement: Is this the start of a sustainable accumulation phase, or simply a transient dip preceding a rebound?
A closer look at the weekly chart reveals the severity of LINK’s situation. The cryptocurrency has decisively lost a support level that had been robust throughout much of 2024 and early 2025. Once the price breached this important zone, it struggled to reclaim it, with the former support now acting as resistance—a critical sign of a weakening market structure.
The chart highlights Link’s previous accumulation range, where it traded sideways for months between approximately $6 and $9. Currently, with LINK’s price hovering near $8.8, it is testing the upper limits of this established range. Should buyers fail to step in at this juncture, the risk may tilt towards a continued acceptance of this range rather than a quick rebound.
Momentum indicators further underscore the cautious sentiment surrounding Chainlink. The Relative Strength Index (RSI) has continued to drift lower, indicating a decline in bullish strength, albeit without signaling a full oversold condition. Additionally, the Chaikin Money Flow (CMF) has turned negative, suggesting that capital is gradually flowing out of LINK rather than being reinvested.
For the time being, for Chainlink’s price structure to regain favor with bullish traders, it must decisively reclaim the $11–$12 range. Absent this development, the outlook appears precarious, with continued consolidation or further downward moves being a distinct possibility. The historical accumulation range remains a critical zone to monitor as LINK navigates these turbulent waters.
In terms of immediate levels to watch, the range of $8.5 to $8.8 will be pivotal in the short term. A breach below this support could see LINK slide down to approximately $7.5. If the price remains below $9, there could be further implications leading back toward the $6.5–$7.0 range. Conversely, the bulls could only regain some semblance of control if the price manages to reclaim the $11 mark, potentially setting the stage for a short-term bounce back.
