Chainlink jumps 2.7 percent to $9.19 after sharp slide

Key supports and market outlook

According to on-chain data, LINK’s market capitalization currently stands at $6.69 billion, with 24-hour trading volume recorded at $286.14 million. The total circulating supply is 727.1 million LINK tokens. Despite these large figures, LINK’s price is still a long way from its all-time high of $52.70 reached on May 10, 2021. Recent data shows the token trading 82.55 percent below that historic peak.

Weekly charts stand out by showing that selling pressure among Chainlink investors is losing steam and the price is attracting buyers at a critical support level.

Since Monday, LINK’s price has bounced from $8.93 to around $9.20, a move that signals the entry of new buyers in the short term. This suggests the high volatility seen at the start of the previous week may have partially subsided.

Spotlight on double bottom pattern

Crypto analyst Crypto With Gopal has highlighted the formation of a double bottom pattern in LINK’s weekly charts. In technical analysis, this occurs when the price finds support at two similar low points, indicating the potential for a renewed rally. Such patterns are often seen as a sign that prolonged selling has ended and that buyers are gaining strength.

The analyst explains that for the double bottom to be confirmed, LINK must break decisively above the “neckline”—the previous key resistance level—currently well above today’s price. If LINK were to fall below the second bottom, bullish expectations could weaken rapidly and the focus may shift to lower support areas again.

Mini glossary: A double bottom is a chart pattern in technical analysis where the price hits the same support level twice and rises after the second low, often signaling a potential reversal.

At the same time, the analyst notes that repeated tests of the support level hint that investors may be accumulating. In other words, as the price repeatedly holds near the same area, it suggests more investors are buying LINK rather than selling.

Cautious recovery in the short run

Shorter-term charts point to a cautious recovery process. On TradingView, the 30-minute LINK/USDT chart shows the price hovering near $9.209 at the time of reporting. LINK is moving close to the midpoint of its Bollinger Bands, with the upper band at $9.226 and the lower band at $9.112, indicating a relatively tight range and reduced sudden volatility.

Technically, after dropping below $8.90 on May 28, LINK quickly rebounded and returned to its median band. The MACD indicator also shows a slight positive trend: the MACD line stands at 0.024 above the signal line, and the histogram has turned faintly positive. All this points to an ongoing recovery effort, though a strong uptrend has yet to clearly emerge.

Going forward, whether LINK can hold support between $9.11 and $9.16 will be critical. Should the price rise above $9.29 and remain there, the rally could gain strength. Conversely, a fall below $8.93 would endanger the developing double bottom pattern once again.