Chainlink price retests August 2024 support at $9.65

The current corrective phase on LINK began once the price lost acceptance below the value area high, which was situated near the $21 region.

This level previously served as a balance point between buyers and sellers, and its failure signaled a shift in control toward sellers.

Once value was lost, price transitioned from a balanced auction environment into a trending corrective move, resulting in accelerated selling pressure.

As is typical in such scenarios, LINK did not spend much time consolidating below the value area high. Instead, price moved swiftly through lower liquidity zones, targeting the next major area of historical interest.

This behavior reflects a lack of meaningful demand between $21 and the current support, reinforcing the importance of the $9.65 region as a potential stopping point for the decline.

Why the $9.65 level matters

The $9.65 level stands out as a critical support zone for several reasons. First, it represents a higher-timeframe support that has been defended multiple times over the past market cycles. Each prior interaction with this region has led to a bullish response, ranging from short-term relief rallies to more sustained upside rotations.

Second, the value area low is in close confluence with this level, increasing its technical relevance. When price reaches the value area low after an impulsive move, it often signals that the market has explored the lower boundary of fair value. At this stage, two outcomes are typically observed: either strong demand enters the market, leading to mean reversion, or price fails to attract buyers and continues into deeper discount zones.

Finally, the $9.65 area carries psychological importance as a long-standing reference point for market participants. Levels with this degree of historical interaction tend to attract attention from longer-term buyers, increasing the probability of at least a temporary reaction.

Upside targets a relief rally scenario

Should LINK successfully hold above $9.65 and attract sustained buying interest, the next upside targets are clearly defined. The first area of interest sits near the point of control (POC), where the highest volume has previously traded.

A move back toward the POC would represent a classic mean reversion following an impulsive sell-off.

Beyond that, the $21.07 resistance level stands out as a major higher-timeframe objective. This zone aligns closely with the previously lost value area high and would likely act as a significant test for any recovery attempt.

While a move from $9.65 to $21 would still be considered corrective within the broader structure, it would represent a substantial relief rally and a meaningful reset in market conditions.

What to expect in the coming price action

From a technical, price-action, and market-structure perspective, LINK is currently at a major decision point.

The $9.65 support level has strong historical significance and has previously produced bullish reactions, giving the market a credible foundation for a relief bounce.

If bullish volume begins to flow and price consolidates above this support, a rotation toward the POC and potentially the $21.07 resistance becomes increasingly likely.