Ethereum News Today: Chainlink's Quiet Support Fight: Will Buyers Rise Before the $21 Test?

Chainlink (LINK) has maintained a critical support level at $23.00, preventing a further decline into the $22.00–$21.00 range, a threshold that traders and analysts closely monitor. Recent price action has demonstrated a weak bullish response from buyers, raising concerns about the token’s ability to stabilize at higher levels. Despite this, the daily support level at $20.50 remains a key indicator for maintaining the broader bullish trend. If this level is broken, it could signal an intensification of downward momentum, which has been evident as Bitcoin dips below $110,000, further pressuring altcoins like LINK.

Chainlink recently announced a significant integration with the U.S. Commerce Department, aimed at delivering on-chain economic data. While the fundamentals of the deal are strong, the market’s reaction has been muted compared to Pyth Network (PYTH), which also secured a government data partnership and saw its price surge over 100% in a single day. Chainlink’s price remained relatively flat, reflecting a lack of immediate enthusiasm. This discrepancy highlights how market perception and the framing of announcements can influence investor behavior, even when the underlying value is comparable.

On-chain and trading data further illustrate the subdued response to Chainlink’s news. Open interest in LINK futures contracts dropped from $1.91 billion to $1.67 billion within a few days, indicating a reduction in leveraged positions. Net buying pressure also waned, with spot flows falling from $58 million to $3.3 million. The Money Flow Index (MFI), a momentum indicator, flattened, showing that inflows lost strength and buying pressure did not accelerate as expected. This trend suggests that while the fundamentals are favorable, traders are not yet convinced enough to commit to sustained bullish bets.

Technical analysis points to several key levels that will define Chainlink’s near-term trajectory. The $23.00 support level has held firm, but continued weakness above this threshold could lead to a retest of the $21.00 support zone. On the upside, a daily candle close above $26.04 could confirm that buyers are regaining control and potentially open the door for a stronger rally. Analysts and traders are closely watching these levels, as they provide clear signals for market sentiment and potential directional shifts.

Looking ahead, Chainlink’s potential for a new all-time high remains a topic of discussion among traders and analysts. Notably, Michaël van de Poppe, a prominent crypto analyst, has flagged the 20-week Exponential Moving Average (EMA) near $21 as a strategic buy zone for accumulation. He argues that a dip to this level could represent a compelling opportunity to build long-term exposure before LINK potentially surges toward new highs. With growing adoption of Chainlink’s oracle services and increasing on-chain activity, the token’s fundamentals remain robust, even as short-term price volatility persists.

Chainlink’s performance in the broader market context will also depend on Bitcoin’s movements and overall market sentiment. LINK often exhibits a strong correlation with Ethereum (ETH), and any upward momentum in ETH could amplify gains in Chainlink. Additionally, as Chainlink continues to expand its role in real-world asset tokenization and AI-driven data feeds, these developments could further solidify its position as a critical infrastructure asset in the blockchain ecosystem. For traders, a balanced approach that incorporates technical indicators and market dynamics will be essential in navigating the evolving landscape for Chainlink in the coming weeks.

Source: [1] Chainlink Price Pulls Back as $23 Support Holds but ... (https://www.bitget.com/news/detail/12560604934925) [2] Chainlink Price Flat After U.S. Government Deal (https://www.thecoinrepublic.com/2025/08/29/chainlink-price-flat-after-u-s-government-deal-whats-missing/) [3] Chainlink (LINK) Trading Setup: 20-Week EMA Near $21 Flagged as Buy Zone by @CryptoMichNL, Accumulate Before New ATH (https://blockchain.news/flashnews/chainlink-link-trading-setup-20-week-ema-near-21-flagged-as-buy-zone-by-cryptomichnl-accumulate-before-new-ath)