Chainlink is beginning to exhibit signs of recovery after maintaining a position above critical support near the $9 mark. Recent data from BraveNewCoin indicates that LINK has registered a price of $9.19, reflecting an increase of 1.34% over the last 24 hours. During this period, the token fluctuated between $8.93 and $9.29.
This short-term rebound is particularly notable as the analysis from Crypto With Gopal highlights the emergence of a double bottom pattern on the weekly chart. The analyst suggests that such a structure might indicate a reduction in selling pressure, provided that LINK sustains its position within the support region.
In terms of market dynamics, Chainlink experienced a renewed interest from buyers after its price tested lower levels previously. Current market data shows LINK’s market capitalization at approximately $6.69 billion, with a 24-hour trading volume estimated at $286.14 million, and an available supply of 727.10 million LINK tokens. Despite this positive trend, the price remains significantly below its all-time high of $52.70, reached on May 10, 2021, which puts LINK down 82.55% from that peak.
The present market chart indicates a recovery tone that is far steadier compared to the earlier sharp declines observed during the week. The price recovery, moving from a low of $8.93 to approximately $9.20, suggests that buyers are actively defending the lower end of the observed 24-hour range.
On the weekly timeframe, Crypto With Gopal has identified a potential double bottom forming, characterized by two major lows near the same support area. This pattern may signal that sellers are losing control following a prolonged downturn. The significance of a double bottom increases when the price breaches the neckline near a previous major swing high. In the case of LINK, the analyst’s chart highlights a broad recovery structure, with a potential breakout zone located well above the current price.
However, it’s essential to note that the double bottom pattern is still in development. For traders to fully embrace this bullish setup, LINK needs to continue holding within the support region. A failure to maintain above the second low could diminish the bullish outlook, redirecting focus toward lower support levels.
The analyst also pointed out that consistent support holds could indicate accumulation, meaning that buyers are entering the market around the same price point, preventing a deeper downturn.
In the short-term analysis, the 30-minute LINK/USDT chart from TradingView revealed that the token was trading near $9.209 at the time. The price was positioned close to the middle Bollinger Band at $9.169, with the upper band near $9.226 and the lower band near $9.112. This setup portrays a narrow trading range following a recovery from a sharp dip below $8.90 on May 28. Although the price has regained ground above the mid-band, there remains resistance near the upper Bollinger Band.
The MACD reading from TradingView indicates a slight positive momentum. The MACD line was recorded at 0.024, above the signal line at 0.021, while the histogram approached 0.003, suggesting weak yet improving short-term momentum.
Ultimately, Chainlink’s next price movement will largely depend on whether buyers can sustain the price above the $9.11 to $9.16 range. A decisive movement above $9.29 would bolster recovery efforts further, whereas a drop below $8.93 would place the weekly double bottom support back under scrutiny.
