- Chainlink forms an inverse head and shoulders pattern, signaling possible short-term reversal above $14 support.
- Traders eye the $16–$16.3 supply zone as the next resistance area for potential bullish momentum.
- LINK trades near $14.47, down 5.1% daily, with $745M in volume showing steady market participation.
Traders of Chainlink (LINK) have their eyes on the $14 support level, as the token appears to be creating a potential reversal setup. The setup suggests the possibility of a short-term recovery if buyers and the mood market can continue to defend price levels.
Inverse Head and Shoulders Signals Recovery Attempt
On the one-hour timeframe, Chainlink appears to be forming an inverse head and shoulders structure — a classical technical pattern often associated with bullish reversals. The left shoulder developed near the $14.8 mark, followed by a deeper low at $14.0 forming the head. The right shoulder has recently taken shape around $14.6, indicating buyers are gradually stepping back in after persistent selling pressure.
According to the shared outlook by CryptoPulse (@CryptoPulse_CRU), this formation may represent the early stages of a lower-timeframe recovery. Provided that the trend remains, LINK may seek to make an entry into the supply area between $16 and 16.3. This area has been the focus of excessive selling in the past and a decisive breakoff will indicate that the market is back in the hands of the buyers in the short term.
Nonetheless, the analysts warn that this bullish formation would be nullified once the market falls below the level of $14. That level has become the line of defense of traders who are setting store to a honeymoon. In the event of a violation, LINK may retrace past demand areas around the $13.3 or even $13.1 and wipe away the current recovery efforts.
Market Data Signifies Low Performance and involvement.
Chainlink is trading at $14.47 at the time of writing, which is a 5.1% decrease in the last 24 hours, according to CoinGecko data. The asset fluctuated between $14.35 and $15.38 each day, which is very volatile in an intraday context but is most likely to be a manifestation of an overall slowdown in the market. Chainlink has a market capitalization of 10.09 billion despite the decline, making the blockchain asset one of the most valuable blockchain assets in the market.
Its 24 hour trading volume is close to $745 million, which is an indication that the liquidity is still strong despite the falling prices. This unchanging turnover means traders are repositioning actively, perhaps they are looking forward to a rebound with the general mood in the market. An increase in purchasing behavior over the present range sustained may give the impetus to retest resistance levels above the present level of $15.5.
Its circulating supply is at 696.8 million LINK and its overall cap is 1 billion tokens. This limited inflation factor reduces potential downward supply pressure, meaning price movements depend more on demand dynamics and trading behavior than on token issuance.
Key Levels Define the Next Directional Move
Chainlink has a short-term forecast based on the conflict of the 14 and the 16 support and supply level. Staying above the lower limit may sustain a bullish trend and reflect purchases among buyers back to the neckline of $15.4. Any move stronger than this would probably prove the reversal trend and might give new hopes to the market.
In case of failure in the holding of the $14.30 -$14.00 area, traders anticipate a further decrease to be seen and LINK may end up reaching the regions of past consolidations. Such a situation would match the behavior of profit taking that is seen in large altcoins in recent sessions. Conversely, a recovery up to $16.0 to 16.3 would capture new interest both among retail traders and algorithmic investors with an eye on the state of a breakout.
In a bigger context, the Chainlink long-term fundamentals are also stable, as the company has been increasing its decentralized oracle provider in bridging smart contracts and real-world data. Although the volatility in the short term is likely to persist, a gradual recovery may be based on the support of above 14. Traders continue to watch closely — a bounce from this zone may determine whether the next move favors buyers or signals further consolidation.
