Chainlink: The Key Level LINK Must Reclaim to Surge Beyond $14

Chainlink's [LINK] accumulation trends quietly persist amidst a generally weak market landscape. The most recent data reveals that 92,946.23 LINK has been added, boosting total reserves to 1,232,139.92 LINK. This accumulation took place while LINK was priced around $12.22, which is close to a crucial demand zone that has developed over several weeks.

This timing is significant, as the increase in reserves occurred during a market downturn rather than during an upward trend. Such behavior suggests a commitment to long-term holding rather than short-term trading reactions. As reserve levels increase over time, they help mitigate liquidity stress and enhance the network’s stability. While reserves do not prompt immediate price surges, they can significantly influence price responses once demand picks up again.

Consequently, although price movements remain under pressure, the overall structure of the network is improving, a divergence commonly observed during late-stage corrections.

Spot Market Activity Indicates Strong Demand

The behavior in the spot market reinforces the notion that current selling pressure lacks strong underlying conviction. The 90-day Spot Taker Cumulative Volume Delta (CVD) has shown a clear bias towards buying, indicating that market purchases are consistently overshadowing sales, despite LINK’s drop from the $16–$17 range to around $12.

Buyers appear to be actively lifting asking prices instead of waiting for deeper declines. At the same time, activity in derivatives markets can distort price signals, making it harder to see the persistent buying strength. Forced liquidations from leveraged positions have kept prices lower, even though steady absorption of buy orders suggests accumulation rather than selling off excess supply. In these conditions, downward movements typically lose strength as they approach established demand zones.

Source: CryptoQuant

Long Liquidations Drive Current Downtrend

Liquidation data shows that forced sell-offs have played a significant role in LINK's recent price decline. Currently, total liquidations amount to roughly $213K, comprising nearly $167.24K from short positions and about $46.03K from long positions. Notably, Binance experienced over $17K in short liquidations, while Bybit accounted for around $124K. These figures indicate aggressive resetting of leverage rather than a return of bearish sentiment.

Repeated long liquidations tend to diminish the fuel for downside movements. As long positions are cleared out, the likelihood of continued sell-offs decreases. Meanwhile, increasing short positions make the market susceptible to rapid rebounds. In this context, the behavior associated with liquidations is progressively revealing signs of exhaustion instead of signaling new trend movements.

Source: CoinGlass

Defending the Demand Zone for Recovery

LINK is currently maintaining a well-defined demand zone between $11.8 and $12.2, where buyers have effectively defended the price multiple times. This area has shown resilience against selling pressure, preventing any significant breaks below $11.8.

Importantly, as of now, the Relative Strength Index (RSI) is at 40.81, with a signal line at 33.16, indicating that bearish momentum is diminishing instead of escalating. This type of RSI behavior typically appears during phases where price bases are being formed. As long as LINK remains above this demand level, the risks of a downturn are limited. However, LINK needs to reclaim $13.02 to confirm short-term bullish strength. A substantial move above $14.65 would then disrupt the current lower-high structure, positioning $16.66 as the next significant resistance level. Therefore, a robust defense of demand sets the stage for a potential recovery toward the $16 region.

Source: TradingView

Liquidity Clusters May Propel Price Higher

The Binance 24-hour liquidation heatmap illustrates dense liquidity clusters situated between $12.6 and $13.2, with another significant concentration around $14.65. These areas often serve as short-term points of interest as forced liquidations take place. The downside liquidity near $11.7 has already been cleared, lowering the risk of immediate breakdowns.

With leverage being reduced and active spot demand, there’s an increasing sensitivity toward potential price increases. If LINK manages to reclaim $13.02, the price could see a swift movement toward $14.65 as short positions start to unwind. Beyond that, $16.66 represents the next major resistance. Thus, the placement of liquidity aligns with a recovery path rather than extended compression.

Source: CoinGlass

In conclusion, Chainlink's market structure now suggests stabilization rather than continuous decline. With reserves exceeding 1.23 million LINK, consistent buying in the spot market, and declining liquidation pressures, it appears that the downside is losing momentum. As long as LINK holds within the $11.8–$12.2 demand zone, the risk appetite shifts upward. A successful reclaim of $13.02 may likely lead to a surge toward $14.65, with $16 positioned as the primary recovery target.

Final Thoughts

This analysis highlights the essential thresholds for LINK to navigate in order to foster a favorable recovery trajectory. By keeping an eye on demand zones and liquidation patterns, traders can better understand potential price movements in the future.