Foreign media reports indicate that Chainlink has rebounded by over 3% recently after falling to around $7.20. The article argues that this level has become a key support zone in this correction. Meanwhile, changes in exchange fund flows and on-chain activity are causing the market to reassess whether LINK is nearing a temporary low.
Exchange outflows have improved
The report noted that during the previous price drop, LINK saw a significant inflow into exchanges, reflecting a stronger selling intention among holders. This situation has recently eased; on-chain data shows that net outflows from exchanges have begun to improve, meaning that some tokens are being transferred out of trading platforms rather than waiting to be sold.
The article argues that this is not enough to prove a trend reversal, but it at least indicates that the concentrated selling pressure from the earlier period may be weakening. Meanwhile, the stabilization of active address data also shows that on-chain activity has not continued to deteriorate. For the short-term market, such changes usually signify the emergence of buying support at lower levels.
$7.2 to $7.5 forms short-term support.
From a price structure perspective, LINK is still in a weak recovery phase. The report points out that the daily chart had previously broken below the multi-month-long uptrend line, causing multiple rejections in the $10.5 to $11 range to eventually turn into a more significant pullback. The price was subsequently pushed towards the $7.2 to $7.5 area, a range that had previously provided support multiple times.
Currently, whether buying pressure can hold this level is one of the most closely watched signals in the market. If the support level is breached, LINK may retest below $7; if it holds and the rebound continues, the market will then discuss whether a short-term bottom has formed.
Leveraged positions are accumulating around $8.
The article points out that the next more immediate focus is above $8. Clearing data shows a dense concentration of leveraged positions around $8.0 to $8.1, meaning that a breakout of this range could trigger some short covering, amplifying short-term volatility.
However, for the rebound to continue, LINK needs to regain its footing above the trendline resistance zone it previously broke through. The report suggests a key range of $8.50 to $9. Only a recovery in this area could allow the price to test the $10 level further; otherwise, the current rebound is more likely to be seen as a temporary correction after the decline.
Overall, this commentary concludes that LINK has not yet escaped its weakness, but easing selling pressure, stabilizing on-chain data, and the temporary effectiveness of key support levels are drawing market attention back to this asset. Whether LINK can extend its rebound above $8 will be a key point to watch in the short term.
