Chainlink Nears Key $15.5 Demand Zone as Metrics Suggest Potential End to Profit-Taking Phase

Key Points

1. Chainlink's price has dropped 17.2% since July 28, falling from $19.5 to near $15.5, mirroring Bitcoin's 4.9% decline in the same period.

2. On-chain data shows a spike in Dormant Circulation on August 1, indicating profit-taking, but the MVRV ratio suggests selling pressure may be easing.

3. The $15.5 level is a crucial support zone, previously acting as a consolidation area in early July and coinciding with the 50-day moving average.

4. Bearish momentum persists, with the RSI below 50 and declining OBV, but holding the $15.5 zone could enable a bullish reversal.

5. Bitcoin's performance is pivotal for Chainlink's price direction, as a sustained rally could boost LINK, while continued weakness may prolong its retracement.