Chainlink (LINK) is currently trading at a crucial support level against Bitcoin, a zone that, in the past, created a record market rally in 2021. This important observation originates from crypto analyst Michael van de Poppe, whose technical analysis shows a potential major market rally for LINK based on its performance against BTC on the weekly trading chart.
LINK revisits bear support against BTC
As per metrics reported by the analyst, Chainlink is currently retesting its historical lows against Bitcoin, a level that historically indicated record lows in previous market cycles. This technical formation suggests an accumulation stage for Chainlink investors. In other words, this price activity indicates a downtrend pattern for Chainlink against Bitcoin. This is an important indicator for investors looking to take advantage of the market dip to accumulate a huge quantity of LINK tokens at a discount.
Today, at the time of the retest, Chainlink’s price was hovering at $13.45, a drop of 3.2% from yesterday. Its trading volume surged by 18%, suggesting increased buyer interest around this support level.
Also, the latest Glassnode data shows a 12% rise in Chainlink wallet addresses holding more than 1,000 LINK coins, indicating heightened buying activity by whales during this market fall. This is an indicator that the market drop has created investment opportunities for investors and traders.
In the past, such retests come before the emergence of major bullish rallies for Chainlink. LINK witnessed a bull run in early 2021 when a similar retest happened on January 5, 2021, and later (after two months) led to a 150% uptrend against Bitcoin. Investors can capitalize on this downturn to accumulate tokens around this support level to position themselves for potential explosive gains in the future.
LINK supporting tokenized finance
This concurrence of price retest and on-chain activity suggests a crucial time for Chainlink investors. This is true, especially considering LINK’s role in bridging DeFi with TradFi (traditional US financial systems), a development that the analyst considers a bullish long-term accelerator for Chainlink’s adoption in 2025-2026.
The integration of Chainlink into the traditional US financial systems has significantly improved its attraction as a long-term asset for holding. This is demonstrated by Chainlink’s recent partnership with The SWIFT payment network for tokenized asset transfers.
