Chainlink (LINK) is showing signs of a potential relief rally toward the key $10 resistance level, following an extended period of downside pressure. The cryptocurrency has established a swing low and is stabilizing above the technically significant $8.33 support zone, which aligns with the 0.618 Fibonacci retracement level, often referred to as the "golden ratio." This area is acting as a high-probability reaction zone, confirming a short-term base and suggesting sellers are losing control.
A key factor supporting the bullish case is the oversold condition of the Relative Strength Index (RSI). The RSI remaining in oversold territory signals exhaustion of selling pressure and often precedes relief rallies as momentum reverts toward neutral levels. This is occurring after an extended downtrend, increasing the probability of a mean-reversion phase.
Recent price action indicates the rise is supported by renewed buying activity, not just short covering. Bullish influxes are appearing, suggesting demand is returning. As long as price maintains acceptance above the $8.33 support, the structure favors a rotation toward higher resistance. The immediate and critical upside target is the $10 zone, which represents a significant psychological and technical resistance area where price has previously faced rejection.
Analysts note that a strong daily close above $10 with solid volume could shift momentum quickly, with the next upside levels to watch being $11.5 and then $12. A move above $12 would break the series of lower highs established since November and suggest bulls are regaining control. However, if LINK gets rejected near the $9.5–$10 range, the broader bearish structure remains intact, potentially leading to a drift back toward the $8 support zone. A breakdown below $8 could open the door to $7.
Beyond technicals, external factors like Bitcoin's overall direction, U.S. macroeconomic data, derivatives market activity, and Chainlink network developments could influence LINK's price movement in the coming weeks. The cryptocurrency is currently at a decision point, with the $10 level serving as the immediate make-or-break hurdle for the short-term trend.
