TLDR
- LINK has rebounded 16.81% in the past day, currently trading at $16.14
- LINK previously corrected by 13.6% from $15.25 to $13.18 after reaching a high of $16.34
- Trading volume has increased by 24%, with volume reaching 25.137M (double the 9-day SMA)
- Key Fibonacci retracement levels to watch include 0.236 at $14.17, 0.382 at $14.50, and 0.618 at $15.00
- Speculation about Chainlink’s involvement with the U.S. strategic reserve and an upcoming crypto summit are driving positive sentiment
Chainlink (LINK) has staged a remarkable comeback. The price has surged 16.81% over the past 24 hours. The token is currently trading at $16.14 at press time.
This recovery comes after a period of market-wide volatility. LINK had previously dropped to $13.18. This represented a 13.6% correction from $15.25.
Trading volume has shown a strong increase of more than 24%. This rising volume often signals growing market interest. Many analysts view this as a positive indicator for continued price momentum.
The increase in wallet holdings suggests institutional accumulation. There also appears to be renewed investor confidence in the token. These factors have helped fuel the recent price surge.
Prior to the correction, LINK had reached a high of $16.34. The recent downturn likely represented profit-taking after a strong rally. This pattern is common in cryptocurrency markets.
Historical patterns in altcoins like Ethereum suggest such pullbacks often lead to price stabilization. If support holds at the $13.18 level, this correction may actually strengthen LINK’s market position.
The 15.8% recovery to $15.25 demonstrated strong buying demand. Chainlink has now pushed even higher to $16.14. This suggests buyers are in control of the market.
Fibonacci retracement levels highlight several critical price zones. These include the 0.236 level at $14.17, 0.382 at $14.50, and 0.618 at $15.00. LINK has managed to break above all these levels.
The ability to surpass the $15.00 threshold signals strength in the market. If the current momentum persists, the next target could be the previous high of $16.34. Some analysts suggest even $17.00 is possible.
Volume analysis reinforces the breakout. Trading volume reached 25.137M, which is double the 9-day SMA of 12.568M. Such volume increases typically accompany strong price trends.
Technical indicators also confirm the positive trend. The MACD indicator has shifted from a bearish 0.335 reading during the dip to 0.190. A bullish crossover occurred at 0.145.
The Rate of Change (ROC) indicator has climbed to 10.78. This reflects renewed price momentum. Similar ROC movements in February 2025 led to further gains for LINK.
LINK’s Open Interest has fluctuated between 4.597M and 4.92M. The peak coincided with the price rebound. This suggests new long positions are being established in the market.
Strategic Reserve?
Multiple factors appear to be driving this positive momentum. One key catalyst is speculation about Chainlink’s technology being used by the United States strategic reserve.
Crypto trader Nicu shared on X (formerly Twitter) that insiders believe Chainlink’s Proof of Reserves is being integrated. This would enhance transparency and security for the reserve.
I’m excited for Friday so I bought $10k more worth of $LINK. word on the street is that the USA strategic reserve is using chainlink proof of reserves 😏 pic.twitter.com/Coc2aqeHFI
— nicu (@nicucrypto) March 5, 2025
Proof of Reserves represents a blockchain verification system for real-time auditing of assets. Chainlink has established itself as a key player in this technology. The potential integration into national reserves would be a major milestone.
Another catalyst is an upcoming crypto summit. Chainlink co-founder Sergey Nazarov is expected to attend this event on Friday. Market participants often buy before such events in anticipation of positive news.
Crypto expert Michaël van de Poppe noted that LINK’s price has rebounded against Bitcoin. This comes after a prolonged correction period. He believes momentum is beginning to shift as LINK approaches a potential bull cycle.
$LINK came all the way back down vs. Bitcoin.
Momentum starts to pick up and I assume that LINK will start its bull cycle, as Sergey is also going to attend the Summit on Friday.
Not a bad moment to accumulate more. pic.twitter.com/2aF9K5JbkR
— Michaël van de Poppe (@CryptoMichNL) March 5, 2025
The Link Panda, another crypto trader, ranks Chainlink as one of the most connected projects heading into the next market cycle. LINK is deeply integrated across multiple sectors, including DeFi, Real World Assets, AI, and institutional adoption.
If you don’t see that $LINK is criminally undervalued right now, then you don’t have a good grasp of what it does. pic.twitter.com/w7PIrbr4Tc
— ⬡ The Crypto Panda ⬡ (@TheLinkPanda) March 5, 2025
The growing relevance of Real World Assets, backed by firms like BlackRock, positions Chainlink favorably. LINK is viewed as a fundamental infrastructure provider for tokenization efforts.
