Chainlink Faces Key Demand Wall at $6.26 With 376M $LINK Bought

18 hours ago 18

April 6, 2025 by Kashif Saleem

Chainlink trades at $12.8, holding above $12.3 support amid heightened selling and market volatility.
376 million LINK bought at $6.26 by 90,000 investors forms a major demand wall.
LINK’s $12 support aligns with 0.5 Fibonacci; breakout may target $19 at 0.236 level.

Chainlink (LINK) is currently navigating a crucial period in its trading activity, holding firm near a key support zone, while broader market sentiment continues to weaken. Despite the downward trend, the asset has maintained its position above the $12 support level, offering a temporary buffer amid increasing volatility in the crypto sector.

The overall digital asset landscape remains fragile, with investor confidence dampened by broader economic uncertainty. Ongoing geopolitical tensions, coupled with rising global financial instability, have had a pronounced effect on risk assets. The recent imposition of tariffs by United States President Donald Trump has further unsettled global markets, amplifying caution among crypto participants.

In this climate, Chainlink has been unable to initiate a strong upward recovery, instead consolidating in a narrow trading range. Its short-term future hinges heavily on the ability of bulls to defend a critical zone. Should current support levels fail, the asset may face an extended correction. However, if they remain intact, LINK may be positioned for a rebound once macroeconomic conditions begin to stabilize.

$6.26 Forms Chainlink Demand Wall

Notably, on-chain analyst Ali Martinez has highlighted a significant accumulation zone for LINK at the $6.26 level. According to data, nearly 90,000 investors collectively acquired approximately 376 million LINK tokens at this price point. This formation of a major demand wall indicates a strong base of investor interest, potentially providing stability during periods of downward pressure.

This demand concentration could prove to be a pivotal level for Chainlink. If this support zone holds, it may serve as the foundation for a price recovery once buying sentiment returns. However, any breakdown below this level could result in further losses for the asset in the near term.

Martinez also identified an important technical support near the $12 mark, corresponding to the 0.5 Fibonacci retracement level. With LINK currently hovering around $12.81, a sustained hold above this level could catalyze renewed bullish momentum and serve as a springboard for further gains.

Martinez further noted that, should momentum build from the $12 region, LINK may aim for a resistance level near $19, which corresponds with the 0.236 Fibonacci retracement zone. Achieving this target would require a significant increase in market stability and investor confidence.

Bearish Momentum Dominates Short-Term Chart

Chainlink remains in a bearish structure on the 4-hour timeframe, trading well below the 200-period SMA, which hovers at $14.27. This significant gap highlights ongoing downside pressure, as bulls struggle to reclaim momentum. The slope of the SMA reinforces the long-term downtrend and suggests strong resistance on any upward move.

The RSI (14) is positioned at 42.96, marginally above its signal line at 41.24, hinting at a mild attempt to recover but still in bearish-neutral territory. Meanwhile, the MACD shows a minor bullish crossover, with the MACD line at -0.222 slightly above the signal line at -0.253, hinting at a possible recovery attempt.

However, the Chaikin Money Flow (CMF) reads -0.04, signaling slight selling pressure and weak institutional inflow. A confirmed breakout above the 200-period SMA could signal a shift in sentiment. Conversely, if the $12.3 support level fails to hold, the next potential fallback zone is near the $10 mark — a psychological threshold that has not been tested since the early part of Q4 2023.

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