LINK, the native cryptocurrency of the decentralized oracle network Chainlink, jumps 2.2% during Monday’s U.S. market to trade at $11.9. This intraday surge followed a cooling off from a broader market correction amid geopolitical tensions in the Middle East, now accelerated with the involvement of the United States. However, the on-chain data highlights a possible correction in the short term but a strong fundamental for a long-term rally.
Chainlink Faces Price Breakdown
From mid-May 2025, the Chainlink price exhibited a notable correction, dropping from $18 to $11.9, the current trading value, representing a 34.2% loss. The bearish downturn maintained its aggressive momentum amid the geopolitical tension in the Middle East, recently intensified after the United States stricked Iranian nuclear sites on Sunday morning.
Despite the bearish sentiment, the total number of addresses with LINK balances on the Chainlink network has recorded stable growth. According to Intotheblock data, the number has increased from 687k addresses in early January 2025 to 718k addresses currently, projecting a 4.5% jump.
This growth suggests that more users are joining or staying engaged with the Chainlink ecosystem. Maintaining this trend would serve as a foundation for long-term price stability and ecosystem health.
H&S Reversal Pattern Hints $10
A deeper analysis of Chainlink’s technical chart shows the formation of a head and shoulder pattern. The chart consists of three peaks: a left shoulder, the middle head, and the right shoulder, as an initial signal of trend reversal with the first lower high formulation.
A negative alignment from the daily exponential moving average (20<50<100<200) accentuates the bearish sentiment in the market. On June 21st, the LINK price gave a bearish breakdown from the pattern’s neckline support at $12.3.
If the sellers sustain this breakdown, the current correction could extend 15% down to hit $10, followed by an $8 low.
On the contrary, the aforementioned supports ($8 and $10) have acted as a major accumulation zone for Chainlink buyers in mid-2024, signaling a suitable pivot level for recovery.
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