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LINK breaks support into critical accumulation zone as Bitcoin slides

 

By Market Steam Feb 03, 2025 

 

 

Chainlink's native asset LINK, has crashed by over 21.33% in the last 24hrs. Traders are watching for selling volume exhaustion as LINK trades near historical accumulation levels.

 

Feb. 02 through 03. LINK experienced significant sell pressure, breaking short term support as the cryptocurrency markets shed $300 billion in the recent crash. Bitcoin broke short-term support at 97k, activating a nosedive for altcoins. 

 

Livecoinwatch reveals that LINK volumes have exceeded 27% of its market capitalization, indicating a potentially oversold market in the short term.

 

Social investors sentiments remain bullish as traders express conviction of LINK’s bullish indicators for 2025. ChannalChartist has attributed the recent market crash to the effects of the United States tariffs on Mexico, Canada and China. 

 

As March 10 draws nears, LINK investors are optimistic about Chainlink's infrastructure adoption in U.S securities clearing agency, The Depository Trust Company(DTC)’s, with planned move to production with Fedwire migration to ISO 20022. 

 

LINK in recovery phase; market cycle analysis

 

LINK monthly price chart | source: Binance.com

 

LINK had a parabolic rally from below $1 in 2019 to an all-time high of $53 in May 2021. This was part of the overall crypto bull run where Bitcoin hit $68K in November 2021.

 

After hitting $53, LINK entered a long bear market, dropping over 90%. The bottom seemed to form around $5-$6 between mid-2022 and early 2023.

 

Price was in accumulation mode for months with very low volatility. LINK started recovering in mid-2023, breaking above $10. It made a strong move to $20+ in early 2024 but faced rejection.

 

The latest candlestick suggests some correction after the rally, speculated to be fueled by recent economic uncertainties posed by the United States tariffs on top trade partners. 

 

Short-term dynamic support rests at $16.53 as denoted by 7-day moving average(MA). The 25-day moving average is at $13.01, revealing the current trend to be bullish as LINK’s market price remains above both MA. 

 

$13.00-$14.00 is a strong historical support and $10.00-12.00 is the long-term accumulation zone, making price crash near perceived long-term bottom, presenting a unique buying opportunity for enthusiasts. 

 

$36.00 is a major resistance from the 2021 bull market. The last few candles have higher wicks on both ends, meaning buying and selling pressure are high and could be exhausted in a few hours, giving room for a price rebound as bulls capitalize on a discount LINK. 

 

LINK price performance overtime reveals higher lows forming since 2023, suggesting long-term accumulation and strength. 

 

If LINK stays above $16-$17, it could push toward $20+ again but If it drops below $16, it may test $13-$14 again.

 

A break below $13 could push LINK back into bearish territory liquidating longs but if Bitcoin remains bullish, LINK could attempt $50 again in late 2025.