Chainlink (LINK) Reclaims Lost Ground After Testing Multi-Year Support at $13, Eyes Recovery

Chainlink (LINK) has reclaimed lost ground after testing a multi-year support level at $13, fueling discussions on whether the bottom is in.

NAIROBI (CoinChapter.com) – Chainlink (LINK) has seen a swift recovery after testing a crucial multi-year support at $13, sparking conversation about the potential bottom formation.

Following a test of $13, a level that has acted as strong support for years, Chainlink’s price showed signs of bouncing back.

At the time of writing, LINK is trading at $14.71 after gaining over 5.6% in the past 24 hours. In the past seven days, it has risen from $13.15 to $14.72, accumulating a trading volume of $541.16 million and rendering a market cap of $9.65 billion.

Crypto analyst Crypto Billion noted that LINK made a “perfect retest of multi-year support” and is now showing signs of bouncing back.

If market momentum remains positive, he predicts that LINK could post a 20%-30% rally in the coming days.

However, despite the recovery, market sentiment remains mixed. While retail traders appear bullish, smart money wallets have shown bearish behavior, suggesting potential selling pressure ahead.

Moreover, the crypto token is showing strength in terms of development activity within the decentralized finance (DeFi) space.

According to the latest data from Santiment, Chainlink stands out as the most active DeFi project in terms of development, considering GitHub activity across more than 3,800 projects.

As seen in the chart above, LINK occupies the top spot on the leaderboard, followed by DeFiChain (DFI), DeepBook (DEEP), and Synthetix (SNX).

This data underscores Chainlink’s ongoing efforts to expand its smart contract solutions, a key factor that will influence the long-term growth of the crypto token.

However, despite its development strength, crypto trader CW noted that LINK is encountering resistance at $15 and $16, with multiple sell walls extending up to $38.

The trader also spotted a buy wall forming just below the current price, suggesting strong accumulation at lower levels.

As the dust settles on the U.S. President Donald Trump’s speech at the Digital Asset Summit in New York, broader crypto markets are showing signs of reaction.

During his speech, Trump touched upon the importance of a balanced approach to crypto regulation, an issue that has been closely followed by members of the crypto community.

The former president’s increasing engagement with digital assets has fueled speculation over regulatory shifts that could benefit established blockchain networks.

In a recent development, Sergey Nazarov, the co-founder of Chainlink, met with Trump’s administration for the White House Crypto Summit.

Nazarov is also set to speak at the D.C. Blockchain Summit 2025, where he will join Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets.

Experts argue that Chainlink’s robust smart contract infrastructure and expanding partnerships in the DeFi domain position it for sustained demand, assuming favorable market conditions persist.

Despite defending its $13 support, the next test for Chainlink will be to break through immediate resistance levels.

If the current momentum continues, analysts anticipate a push toward $16 in the short term.