Chainlink (LINK) is testing a key support level that could determine the next move for the Chainlink price, with a successful defense potentially sparking a rebound while a breakdown may extend losses. Meanwhile, the network has expanded its reserves, reflecting confidence in its long-term growth and ecosystem development.
At the time of writing, LINK is trading at $7.29 with a 24-hour trading volume of $171.54 million and a market capitalization of $5.3 billion. Despite the 1.72% loss over the last 24 hours, the Chainlink price structure and accumulation point to a bullish reversal ahead.
Source: CoinMarketCap
Also Read: Chainlink Advances Institutional Stablecoin Adoption Through Project Pangea
Chainlink Price Eyes $8.64 Rebound Amid Support Test
According to the crypto analyst Alpha Crypto Signal, the Chainlink price has surrendered its recent recovery after forming an inverse V-shaped reversal on the daily chart, erasing gains from its sharp impulsive bounce.
The Chainlink price is now testing a critical neckline support level that could determine its next move. This zone has become the primary focus for traders as market sentiment remains cautious amid growing bearish pressure.
Source: Alpha Crypto Signalβs X Post
If the Chainlink price can successfully sustain this horizontal support level, the coin will get a chance to make a relief move towards the $8.64 resistance level.
If there is a breakdown below the neckline on a daily basis, this will indicate that there is a bearish breakdown in place, which will change the structure of the market in favor of bears.
Chainlink Accumulates 593K LINK Worth $4.6 Million
The data from Chainlink further highlighted that the platform has also expanded its reserve assets via yet another huge acquisition of 593,088 LINK worth more than $4.6 million in June.
The most recent addition to the treasury has brought the total balance of the Chainlink Reserve to 4,504,167 LINK, highlighting the continued focus of Chainlink on securing financial stability.
Source: Chainlinkβs X Post
This increasing reserve shows the commitment of Chainlink towards maintaining a strong treasury that will support the coming development and expansion. In line with the growth of decentralized finance, tokenized real-world assets, and cross-chain infrastructure, an increase in LINK reserves shows optimism in the protocolβs strategy for the future.
Despite the bullish chart structure and the reserve accumulation, the Chainlink price movement is still bearish. This movement is largely tied to the cautious trend in the crypto market as the Bitcoin price is moving in a sideways direction.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Chainlink Adds Over 6,000 New Wallets in Two Days Despite Weak Crypto Market
