Chainlink’s price is approaching a crucial $15.5 support zone after retracing 17.2% from recent highs near $19.5, a decline occurring alongside Bitcoin’s 4.9% pullback during the same period. This $15.5 level previously functioned as a consolidation area in early July and currently aligns with Chainlink’s 50-day moving average, intensifying its technical significance.
Recent on-chain metrics suggest potential exhaustion of the sell-off. A notable spike in Dormant Circulation signaled profit-taking shortly after the decline began. However, Chainlink’s Market Value to Realized Value (MVRV) ratio now indicates moderation in selling pressure, hinting that the correction phase may be nearing its end.
Despite bearish momentum persisting—evidenced by the RSI hovering below 50 and declining On-Balance Volume (OBV)—holding above $15.5 could catalyze a bullish reversal. Such a rebound would require renewed accumulation and improved market sentiment to overcome current resistance barriers.
Bitcoin’s performance remains pivotal for Chainlink’s trajectory. A sustained Bitcoin rally would likely propel LINK upward, while continued weakness in the broader market could prolong its consolidation below key resistance levels.