Chainlink (LINK) has found itself in a crucial technical zone, experiencing a significant decline that has pushed its price down to a historical support level at $9.65. This drop follows a loss of the key value area near the $21 mark, positioning the market at a pivotal inflection point where a potential relief bounce could occur if buyer interest returns.
The recent downward momentum began after LINK’s price fell below the $21 level, which had previously served as a balance point between buyers and sellers. This breakdown shifted control towards sellers, resulting in an impulsive sell-off that carried the price rapidly through lower liquidity zones, ultimately reaching the significant support area.
At $9.65, the support level is crucial for multiple reasons. First, it represents a higher-timeframe demand zone that has historically prompted bullish reactions, particularly during its last notable defense in August 2024. The area not only serves as a multi-year support level but is also closely aligned with the value area low, which enhances its technical relevance. When prices retreat to this lower boundary after a significant move, it often indicates that the market may either attract strong demand—leading to a mean reversion—or fail to do so, triggering further declines.
Furthermore, the psychological significance of the $9.65 level cannot be overlooked. Levels with such historical interaction tend to draw interest from long-term buyers, raising the likelihood of at least a temporary rebound.
Should LINK manage to remain above the $9.65 level and attract sufficient buying interest, the next upside targets would be the point of control (POC) and the previous resistance level around $21. A successful rally back to the POC would represent a classic mean reversion after the recent sell-off. Although any upward movement towards $21 would still be seen as corrective within the broader market structure, it would signify a notable relief rally and help reset market conditions.
The coming price action is critical, as LINK stands at an important decision point. The behavior of the price around the $9.65 support will likely dictate the next steps. If bullish volume enters the market and the price consolidates above this level, a rotation towards the POC and potentially back to the $21 resistance becomes increasingly plausible. However, if the market fails to regain demand, LINK may face further downside risks.
With a spotlight on this historically significant support level, market participants are focused on how Chainlink navigates these next crucial sessions, as the potential for a relief bounce or continued decline hangs in the balance.
