Chainlink (LINK) Surges 7% as Geopolitical Tensions Ease

Chainlink (LINK) has once again captured the attention of traders and long-term holders following a sharp 7% rebound from recent lows. The cryptocurrency, which had been under selling pressure throughout June, dropped to multi-week lows near $11. However, a recent surge in momentum has pushed the price back above $13, sparking questions about whether this marks the beginning of a broader trend reversal. Technical indicators are starting to shift, and support levels are holding firm, making all eyes focus on Chainlink's next big move. The question on everyone's mind is whether $16 is the next stop or if this is just a temporary bounce.

The sudden price surge of Chainlink can be directly linked to a significant shift in global sentiment following a major geopolitical breakthrough. The announcement of a ceasefire between Israel and Iran, after weeks of escalating military action, has been welcomed by global markets. This truce, which comes after Israel claimed to have "eliminated the Iranian nuclear threat," has triggered a rally across risk-on assets. Cryptocurrencies, which were under pressure during the conflict, are now rebounding sharply as war fears subside and investor confidence returns. LINK, like other altcoins, is benefiting from this risk reversal, gaining nearly 7% on renewed buying momentum.

The timing of LINK’s bounce aligns closely with the ceasefire announcement, signaling that macro-driven relief is playing a strong role in the current price action. Over the past week, the crypto market had been rattled by geopolitical uncertainty, with LINK dipping below $12. However, the easing of war tensions has reversed that trend, pushing LINK above key resistance levels. This bounce is not just technical—it reflects a broader market rotation back into digital assets now that fear-driven outflows have stopped. If geopolitical calm persists, we could see further upside in LINK as sentiment stabilizes and risk appetite grows.

Chainlink (LINK) price is showing signs of a potential reversal after a sharp bounce of 6.79%, closing the daily candle at $13.05. This upward momentum came after several days of declining candles, indicating that buyers may be stepping in at key support levels. The price action rebounded strongly from around $11.30, a historical demand zone close to the S2 Fibonacci pivot support. The Heikin Ashi candles on the daily chart now show a solid green candle after a series of red bodies—an early signal of trend change. This bounce occurred just below the key horizontal support range between $11.20–$11.60, which has held firm through multiple tests in June. The current resistance to watch is the $13.20 level (R1 pivot), where sellers could re-enter.

Momentum indicators support the bullish case. The Relative Strength Index (RSI), which had dipped to oversold territory near 39, is now pointing upward and nearing 45.27. A cross above 50 could indicate a confirmed momentum shift. Moreover, the price reclaimed the S2 level, which could now act as short-term support if the rally continues. If this bounce mimics the previous recovery pattern in April (which saw a move from $12.30 to $16.20), LINK price could be aiming for a 30% rally from its bounce point. This aligns with the previous major resistance zone around $15.80–$16.00, which acted as a strong rejection area in early June. A clean breakout above $13.20 could trigger bullish momentum toward that region.

However, if LINK price faces rejection at $13.20, failure to break this level could lead to a short-term pullback. The support levels to watch include $12.20 – psychological and Fibonacci S2 area, $11.00 – recent low, and $9.80 – S3 pivot and long-term support. If LINK closes below $11 again, bearish pressure may intensify, dragging it toward the $9.50–$10 support cluster. A bullish bias is developing, but confirmation is still needed. A daily close above $13.20 will validate the breakout and open the path to $14.50 and eventually $16.00. As long as LINK price holds above $12.20, the bulls retain control. However, if momentum fades and Chainlink price dips below $11.50 again, the bear trend could resume.