Tag: strengthened

The post Chainlink hits a critical floor Is smart money set for a breakout? appeared com. Key Takeaways What does LINK’s breakdown below $16 reveal about market structure? It shows stress on a major supply zone, yet shrinking exchange reserves and an Elliott rebound keep recovery potential alive. Do traders show confidence in a possible LINK reversal? Yes, strong Taker Buy dominance and heavy long positioning among top traders indicate rising conviction in a trend shift. Chainlink’s [LINK] sharp decline below the key $16 support zone placed 53. 87 million accumulated tokens under pressure as sentiment weakened and downside momentum expanded. The cost-basis heatmap showed strong earlier buying at that zone, and its loss turned the area into resistance that traders monitored. In fact, the breakdown shifted psychology, because buyers expected continuation instead of rejection. Even so, LINK still traded near a dense activity cluster, and patient holders waited for recovery signals. That cluster became the key rebound area for the short term. Shrinking exchange reserves hint at bullish pressure Chainlink Exchange Reserves continued falling, and the additional 2. 26% decline toward 1. 8 billion strengthened the narrative of ongoing accumulation rather than distribution. Holders removed LINK from exchanges, which signaled confidence despite the correction. On top of that, shrinking reserves reduced sell-side liquidity and supported sharper upside when buyers returned. Outflows also tended to precede stabilization by limiting supply pressure. However, the $16 breakdown still weighed on sentiment, and short-term traders waited for a firmer base. Even so, persistent reserve declines built a constructive backdrop for any recovery. The price now hovered near the lower boundary, where buyers triggered a rebound after completing an Elliott A-B-C correction. The reaction from the “C” leg showed that the market still respects the lower channel support. Having said.