LINK Slides 17% to $15.5 Zone as Metrics Signal Rebound
Chainlink (LINK) fell 17.2% last week, retracing from $19.5 to a key $15.5 demand zone. This move tracked Bitcoin’s 4.9% drop from $119,800 to $113,600. On-chain metrics suggest profit-taking may be ending. Santiment data showed a spike in Dormant Circulation on August 1 and a decline in the 90-day Mean Coin Age. The MVRV ratio has dropped toward zero, signalling diminishing holder profitability. Technically, LINK’s RSI remains below 50 and On-Balance Volume is falling, reflecting bearish momentum. However, the $15.5 demand zone is reinforced by the 50-day moving average and the FRVP Value Area Low at $15.7. Traders should watch for increased buying volume around $15.5 and a Bitcoin rebound to confirm a reversal.
Neutral
While LINK has slid 17.2% into a strong $15.5 support zone and Bitcoin’s drop adds pressure, on-chain metrics like Dormant Circulation and MVRV suggest the selling wave may be ending. Technical indicators remain bearish, with RSI below 50 and declining OBV. The balance between a tested demand zone and persistent negative momentum creates uncertainty. Traders will need confirmation via increased buying at $15.5 and a Bitcoin rebound before a clear directional bias emerges.