Chainlink is sitting in a quiet phase right now. Price is weak but the base looks strong. LINK is trading close to twelve dollars where buyers keep showing up. This area has acted like a floor many times. Each drop into this zone gets met with buying. That tells us people still believe in the project even when the market feels heavy.
One key sign comes from reserves. A large amount of LINK moved into reserves while price was falling. This did not happen during a rally. It happened during fear. That matters. When people add to reserves during a drop it usually means long term belief not fast trading. Reserves do not pump price in one day. They slowly reduce sell pressure over time. This helps price react better when buyers return.
Spot buyers also play a big role here. Even as LINK fell from higher levels buyers kept stepping in. Market buys stayed stronger than market sells for weeks. People are not waiting for much lower prices. They are buying at current levels. This shows steady demand. The price still dropped because of leverage trading not because spot buyers disappeared.
Most of the recent fall came from liquidations. Long traders using leverage got forced out. This pushed price down fast. But that kind of selling does not last forever. Each liquidation clears more risk from the market. As leverage resets the chance of another sharp drop gets smaller. At the same time short positions build up which can fuel a bounce later.
The demand zone between eleven point eight and twelve point two dollars is holding well. Price dipped into this area many times and bounced each time. It did not break and stay below. That shows strong defense. Momentum tools also hint at slowing weakness. Selling pressure is fading not growing. This often happens when a base forms.
For LINK to turn the corner it needs to reclaim thirteen dollars. That level matters because it sits above recent lower highs. A clean move above it would show buyers are back in control in the short term. Once that happens price has room to move toward fourteen and higher.
Liquidity levels also support this idea. There is more activity waiting above current price than below. Downside liquidity near eleven has already been cleared. This reduces the chance of a deep drop. If price moves up and hits higher liquidity zones it can move fast as short positions close.
Overall Chainlink looks more stable than weak. Reserves are growing. Spot buyers are active. Forced selling is easing. As long as price stays above the main demand zone the risk stays limited. A push above thirteen dollars could open the door to the mid teens again. The structure now points to recovery not breakdown.
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