Chainlink is approaching an important demand zone at $15.5, where profit-taking pressure shows signs of decreasing, supporting expectations of ending the correction phase.
On-chain and technical developments suggest that the recent decline of Chainlink is likely entering its final phase, but a sustainable recovery has not yet been fully confirmed.
MAIN CONTENT
Chainlink fell 17.2% after Bitcoin dropped 4.9%, approaching a strong demand zone around $15.5.
On-chain data indicates that profit-taking selling pressure is weakening, MVRV is close to zero, and the market may soon rebalance.
Technical movements, price, and core indicators reinforce the possibility that Chainlink's price will stabilize or recover in the demand zone.
Chainlink (LINK) has just experienced significant volatility; what is happening?
The cryptocurrency market has just witnessed consecutive strong corrections, with Chainlink dropping 17.2% since July 28, while Bitcoin also fell 4.9% from $119,800 to $113,600. The latest on-chain and technical signals suggest that this decline in LINK may soon end, but a strong recovery still needs time for verification.
According to data from Santiment, several core indicators such as Dormant Circulation, Mean Coin Age (90 days), and MVRV are all issuing warnings about price trends, providing an overview of the actions of large investors as well as the strength of the support area. The signs indicate that profit-taking selling pressure has significantly decreased, and the possibility of a correction phase entering a balance stage.
Chainlink fell 17.2% after Bitcoin's adjustment: What is the market context?
Since July 28, Chainlink has decreased by 17.2%. As a leading Oracle project, this sharp volatility coincides with Bitcoin's drop of 4.9% from $119,800 to $113,600. The market's downturn has led to cautious sentiment, with most investors taking the opportunity to lock profits in the previously high price range, resulting in a sudden increase in selling supply.
Chainlink often moves in tandem with Bitcoin's volatility during major corrections, especially when the market enters a broad profit-taking cycle.
— Santiment Report, 2025
Notably, despite pressure from Bitcoin's decline, Chainlink still receives attention from both individual and institutional investors due to its widespread application potential in the DeFi field and smart contracts. A sharp price correction also means that short-term risk levels increase, but it opens up accumulation opportunities for long-term investors when LINK returns to attractive value zones.
On-chain volatility: Has the selling pressure ended?
Data from Santiment indicates that the wave of large-scale profit-taking has shown signs of slowing down. The Dormant Circulation indicator recorded a new peak on August 1, showing that a large volume of tokens has been moved after a long period of 'stillness', often signaling strong selling pressure in the short term.
A surge in Dormant Circulation alongside strong price volatility is often a sign of the end of a short-term profit-taking cycle.
— Santiment Analytics, 2025
At the same time, the price of LINK dropped by 5.08% in a day, clearly demonstrating the selling behavior of long-term investors. However, as the first week of August began, new data revealed signs of cooling down: Mean Coin Age (90 days) – representing long-term accumulation trends – has reversed downward, indicating a high level of token movement that does not last long. The continuous decline in Mean Coin Age over the past two weeks also reflects the trend of distributing supply across the network that is gradually coming to an end.
At the same time, the MVRV ratio (Market Value to Realized Value) has also declined sharply along with the price of LINK, indicating that most short-term investors are no longer making a profit. When the MVRV approaches zero, selling pressure decreases because the opportunity for profit-taking is no longer attractive, helping the price form a new balance zone.
Mean Coin Age, Dormant Circulation, MVRV: What do these indicators mean?
Mean Coin Age measures the average age of circulating tokens, reflecting the degree of accumulation – holding coins for a long time by investors. An increase in value means that the coin is less exchanged, with a preference for hoarding. When the indicator declines, it signals that holders are switching to selling, and the network is distributing supply strongly.
Dormant Circulation measures the amount of 'dormant' coins that suddenly become active again within 24 hours, often signaling that whales are moving large amounts of tokens to exchanges to sell off or redistribute.
An MVRV close to zero means that most holders have exited short-term profit status, and the market is likely entering a new phase of seeking attractive value.
— CryptoQuant Research, 2024
These data all signal: when Dormant Circulation and Mean Coin Age both decline, along with MVRV at low levels, short-term selling and profit-taking pressure are entering the final phase, and the market is likely to create a new balance zone or prepare for a recovery reversal.
Does the current technical trend support a price reversal for Chainlink?
According to the daily chart (1D) of LINK/USDT on TradingView, the price action reflects the overwhelming dominance of the sellers as the market structure maintains a downtrend. The RSI indicator plummeting below the neutral threshold of 50 confirms the short-term negative state due to the large selling pressure.
At the same time, the OBV indicator – which aggregates accumulated trading volume – is also gradually decreasing, meaning capital has not yet returned strongly to LINK. However, past movements show that the $15.5 zone has been a very strong demand convergence point in the last correction, creating a solid foundation for a remarkable price recovery in July.
The price zone of $15.5 on Chainlink was once a zone of large trading volume accumulation, with potential to form a short-term technical bottom if the indicators align.
— Trader @CryptoJungs, opinion 2025
Notably, the demand zone coincides with technical levels such as the 50-day moving average and is also close to the Value Area Low ($15.7) on the Fixed Range Volume Profile indicator, indicating a high probability of a strong trading volume zone formed since early July, opening up the possibility of a technical reversal if the market does not see new selling pressure.
The $15.5 demand zone of LINK: A recovery opportunity or a bull trap?
The price zone of $15.5 is not only a strong rebound point for Chainlink in July but also converges with many key technical factors, such as the intersection with the MA50 line and the Value Area Low of the trading volume distribution model. Looking at historical data, this zone acts as a price foundation, where demand once pushed prices to rise quickly again.
An external supporting factor is Bitcoin's price movement: if BTC does not continue to breach the bottom, LINK is more likely to bounce back from this support zone. However, the market still needs to closely monitor the actual price reaction to avoid the risk of a 'bull trap' when the buying power is not yet strong enough or the overall market continues to correct.
Technical indicator Current Trend Meaning with the $15.5 MA50 Support Confirmation Short-term bullish momentum OBV Downward Liquidity has not fully absorbed the selling pressure RSI Below 50 Sellers are still dominant, further observation needed Fixed Range Volume Profile Value Area Low at $15.7 Large trading volume converges to support the price.
How does Bitcoin's price affect LINK's movements?
Chainlink often has a strong correlation with Bitcoin's volatility during major corrections. Bitcoin's drop from $119,800 to $113,600 triggered a strong correction in LINK. Therefore, investors need to continuously monitor Bitcoin's price movements to identify early reversal or continuation signals for Chainlink.
If Bitcoin stabilizes and recovers from major support zones, LINK will have many opportunities to bounce back from the $15.5 zone. Conversely, if Bitcoin continues to plummet, selling pressure may soon return, making it difficult for LINK to rise sharply immediately.
Professional traders closely monitor Bitcoin's movements before deciding to increase their positions in altcoins like Chainlink.
— AMBCrypto Research, 2025
Overall picture: What will happen next with Chainlink?
Both on-chain and technical indicators point to the conclusion: Chainlink's correction is likely entering its final phase, with the demand zone of $15.5 - $15.7 forming a strong technical foundation. However, a sustainable recovery requires further confirmation signals such as positive capital flows returning (increased OBV), clear upward bottom structure, or RSI exceeding the neutral threshold.
In the short term, the volatility range will closely depend on the overall market sentiment and Bitcoin's price movements. MVRV data has approached zero, the risk of widespread sell-off is gradually decreasing, but investors need to patiently wait for clear reversal signals from both technical indicators and actual price actions before increasing their stakes.
Comparison: How do Chainlink and other major altcoins behave during market corrections?
When the market enters a phase of strong simultaneous correction, most major altcoins are under similar selling pressure. However, in many cases, Chainlink often declines more sharply than the average due to its nature as a token for Oracle projects, which are highly sensitive to Bitcoin's volatility and DeFi capital flows.
Project Percentage decrease in 7 days (%) Main impact Chainlink 17.2 Widespread profit-taking, Bitcoin drops sharply, large on-chain selling pressure Ethereum 13.5 ETH whales reduce holdings, capital flows out of DeFi Solana 20.0 Liquidity declines, investors withdraw Polygon 15.8 General market adjustment, gas fees decrease.
Compared to other top altcoins, Chainlink does not have the largest decline but maintains close to the average level, reflecting strong demand in the new support zone.
Recovery potential and LINK trend forecast as the market rebounds.
The most likely scenario for LINK is to fluctuate around the $15.5 demand zone, accumulating in the short term before signals of capital returning to the market appear. If Bitcoin rebounds strongly, the buying pressure for LINK will significantly increase as traders seek attractive prices and anticipate a new bullish cycle in DeFi.
According to many prominent investors' analyses, the recovery potential will depend on decisions from large capital flows (Institutions) as well as the development of the Chainlink ecosystem, particularly the integration of oracle products with major DeFi projects or new system partnerships.
Price action at the support zone will play a decisive role in the possibility of a reversal. If the market sees a large buy-wall, the chances of a bottom forming and bouncing back are quite clear.
— PaxDex Analytics, 2025
Medium to long-term investors may consider accumulating in parts, limiting FOMO while waiting for clear reversal signal confirmations to optimize profits and manage risks.
Important notes when trading Chainlink in the current phase.
Given the volatile market context and Chainlink having just undergone a deep decline, investors need to pay attention to:
The current strong support zone is around $15.5 - $15.7, so careful consideration is needed when entering new positions.
Large volatility range, avoid using high leverage or going 'all in' without confirmed trend signals.
Continuously manage risk governance, set appropriate stop-loss levels, and allocate capital reasonably.
Closely observe Bitcoin's price movements, as BTC's fluctuations directly impact Chainlink's recovery prospects.
Use a combination of technical analysis, on-chain data, and the project's fundamental factors.
Frequently asked questions
Has Chainlink finished its correction?
Chainlink's strong decline shows signs of entering the final phase as On-chain data records weakening profit-taking pressure, with a solid demand zone around $15.5. However, a sustainable recovery has not yet been fully confirmed.
How to identify reversal signals for Chainlink?
Signals to watch for include RSI surpassing 50, OBV increasing strongly, price closing above the $15.7 zone, or MVRV data returning to positive territory. Additionally, positive price action from Bitcoin also supports confirmation of a reversal for LINK.
What is the relationship between Bitcoin's price and Chainlink?
Chainlink often has a high correlation with Bitcoin's volatility, especially during major corrections. Therefore, investors need to closely monitor BTC's price movements to promptly grasp LINK's trends.
Why is the Dormant Circulation indicator important for LINK?
Dormant Circulation indicates that a large amount of 'dormant' coins have just moved strongly. When the indicator spikes, it is a sign of profit-taking selling pressure or token distribution from whales, directly affecting short-term prices.
What price zone is currently a potential entry point for LINK?
The current strong support zone for LINK is from $15.5 to $15.7. However, traders need to wait for further confirmation from technical indicators before making large investments to minimize short-term risks.
What factors could help Chainlink's price recover?
The price of LINK could rebound if the market receives capital flows back into DeFi, Bitcoin reverses upward, or Chainlink launches new Oracle solutions, expanding cooperation with large-scale projects in the market.
How should investors manage risks when trading LINK at this time?
It is advisable to allocate capital reasonably, set tight stop-loss levels, avoid using high leverage, and always closely monitor actual price actions as well as important on-chain data before entering new positions.
Source: https://tintucbitcoin.com/link-giam-manh-co-hoi-phuc-hoi/
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