All-out Battle to Defend $7.05, Saved Three Times...Chainlink (LINK), Where Does It Go Now?

▲ Chainlink (LINK)

As Chainlink (LINK) is discussed to potentially fall to the $7.05 support level, a key price point that has led to three past rebounds is once again being tested. If the defense of $7.05 succeeds, there is a possibility of a rebound to $9.47 and $10.80, but decreasing trading volume is sounding an alarm for the upward trend.

According to TheCryptoBasic on July 9 (local time), Chainlink fell 4% this week, following the overall bearish trend in the cryptocurrency market. After recovering to $8 at the beginning of the week and rising to $8.17 during Monday's trading, it failed to break past the 50-day simple moving average, which has acted as a resistance level for several weeks, and retreated again.

Analysts suggested the possibility of Chainlink falling by approximately 9% further to the $7.05 demand zone. The $7.05 level was the price point where the rebound began during the market crash on February 6, and recovery also occurred from the same support level on June 6 and 25. As buying pressure has repeatedly flowed in, it has been identified as a critical technical zone that will determine future price movements.

Analysis suggests that if the $7.05 level holds, a rebound towards the next resistance level of $9.47 becomes possible. $9.47 is 33% higher than the support level. If the bullish trend continues and the overall cryptocurrency market recovers, there's a possibility of rising to the May high of $10.80, which represents a 53% increase from the $7.05 level. Conversely, if the support level breaks, the next demand zone at $6.60 could be tested again.

The problem is that market participation is not following through during the rebound process. Recently, Chainlink's 4-hour spot trading volume decreased by 5% to $5.11 million, and futures trading volume fell by 14% to $39.35 million. With the momentum in the derivatives market also weakening, TheCryptoBasic cautioned against price increases without increased trading activity, fearing they might end as temporary rebounds before the next decline.

The key to Chainlink's price movement is whether the $7.05 support level, which led to three past rebounds, can be defended. If buying pressure re-enters, $9.47 and $10.80 are mentioned as upper target zones, but if $7.05 is breached, the $6.60 demand zone is suggested as the next technical support level.

[Article Key Summary]

-Analysts suggested the possibility of Chainlink undergoing an additional correction of approximately 9% to the $7.05 support level.

-$7.05 is a key support zone where Chainlink's rebound began on February 6, June 6, and June 25.

-If $7.05 is defended, $9.47 and $10.80 are mentioned as rebound targets, but decreasing spot and futures trading volumes were pointed out as a concern.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*