Is Chainlink’s $7 support the start of a LINK price rebound? Check forecast

Chainlink LINK remains under pressure after another week of losses, but traders are now watching closely to see whether the token has finally established a short-term bottom at $7.04.

At the time of writing, LINK was trading at $7.29 after falling 7.2% over the past seven days and 3.29% over the past 24 hours.

Earlier, the cryptocurrency slipped to a low of $7.04 before recovering to $7.29.

The decline has extended LINK's monthly loss to 22.6%, while the token is down 45.4% over the past year.

Strong network developments continue despite weak price action

While LINK's chart remains under pressure, activity across the Chainlink ecosystem continues to expand.

One of the latest developments involves the Aave community, which is considering deploying its yield-bearing sGHO stablecoin across multiple blockchain networks using Chainlink's Cross-Chain Interoperability Protocol (CCIP).

If implemented, the proposal would allow users on different networks to access yield-bearing GHO while relying on Chainlink's infrastructure to facilitate secure cross-chain communication.

Chainlink has also strengthened the economic model surrounding its ecosystem through its Strategic Reserve.

The reserve has now accumulated more than $4.6 million (approx. Rs 1.3 billion) worth of LINK in June, with tokens acquired using revenue generated from Chainlink services.

Instead of distributing those proceeds immediately, the system converts service payments into LINK, creating an additional source of demand tied directly to network usage.

Institutional adoption has also continued to grow.

Chainlink recently became part of Project Pangea, an initiative involving more than 50 banks from Europe and South Korea representing over $10 trillion (approx. Rs 2,795.9 trillion) in assets under management.

The project is testing stablecoin-based foreign exchange settlement with the goal of reducing settlement times from the traditional T+2 cycle to same-day settlement while lowering counterparty risk.

Chainlink provides the interoperability layer connecting blockchain infrastructure with existing banking systems through standards such as ISO 20022 and integrations with SWIFT messaging.

Another notable development came from T-RIZE Group, which introduced the first on-chain proof of insurance solution for tokenised private credit on the Canton Network using Chainlink technology.

The implementation enables institutional investors to verify insurance coverage through cryptographic proofs anchored on-chain, reducing reliance on manual documentation while improving transparency for tokenised assets.

Has Chainlink (LINK) already formed a bottom?

The technical picture remains tilted to the downside despite LINK holding above the $7.00 mark.

Across 23 tracked technical indicators, Chainlink has a net bearish reading with 14 sell signals, four buy signals and five neutral signals.

The sell signals come almost entirely from trend-following indicators.

All 12 monitored moving averages are flashing sell signals, while oscillators present a more balanced picture with four buy signals and only two sell signals.

LINK is trading below the 10-day, 20-day, 50-day, 100-day and 200-day EMAs, leaving every major moving average above the current price as potential resistance.

Remaining below the 200-day EMA, particularly, suggests that long-term momentum has yet to recover.

Momentum indicators, however, are beginning to show signs that selling pressure could be easing.

The daily Relative Strength Index (RSI-14) stands at 30.39, placing the token just above oversold territory.

On the weekly chart, the RSI is at 36.85, reflecting a market that has weakened considerably over recent months.

Looking at the important price levels, the immediate support sits at $7.02, only slightly above the recent low of $7.01. A sustained break below that level could expose LINK to another leg lower.

On the upside, the first major resistance is located at $8.315. A confirmed close above that level would shift attention toward the next resistance at $9.193.