crypto.news
Chainlink price pulled back this week after facing rejection near a key Fibonacci resistance level, while traders closely watched whether bulls could defend the important support-resistance flip zone near $10.
According to data from crypto.news, Chainlink ($LINK) traded around $10.2 at press time on May 14 after briefly rallying toward $10.8 earlier this week. The token has recovered significantly from its February lows near $7.2, though momentum has started slowing after the latest breakout attempt stalled near the 0.5 Fibonacci retracement level.
The recent rebound in $LINK has been supported by improving sentiment across the broader crypto market alongside growing institutional interest in tokenized real-world assets, a sector where Chainlink continues positioning itself as a core infrastructure provider.
Investor sentiment around the protocol also strengthened this week after Chainlink announced new integrations tied to its Cross-Chain Interoperability Protocol and data infrastructure offerings, further expanding its role within the tokenization and decentralized finance ecosystem.
At the same time, derivatives sentiment has continued improving, with $LINK futures open interest and funding rates remaining positive over recent sessions, signaling that traders still maintain a moderately bullish positioning despite the latest pullback.
On the daily chart, Chainlink recently broke above the key 0.382 Fibonacci retracement level near $9.93 before rallying toward resistance around the 0.5 retracement zone near $10.79, where sellers became increasingly active.
The current pullback now places focus on the important horizontal support-resistance flip zone near $10.10, which previously acted as resistance during the broader consolidation phase before turning into short-term support after the recent breakout.
As long as $LINK continues holding above this region, the broader short-term structure remains constructive. A successful defense of the $10 area could allow bulls to regroup for another attempt toward the $10.8 resistance zone, followed by the 0.618 Fibonacci retracement near $11.64.
A look at the Supertrend indicator also supports the moderately bullish outlook. Notably, the indicator recently flipped bullish on the daily timeframe, signaling that buyers currently retain short-term trend control despite the ongoing consolidation.
Meanwhile, the Aroon indicator continues to favor bullish momentum, with the Aroon Up remaining above 70% while the Aroon Down stays near 0%, suggesting buyers still maintain relative dominance within the current trend structure.
However, momentum appears to be gradually cooling after $LINK’s strong rally over the past several weeks. Failure to hold above the key $10 support-resistance zone could weaken bullish momentum and potentially expose the token to deeper pullbacks toward the next major support regions near $9.93 and $8.87.
On the upside, bulls would likely need to reclaim the $10.79 resistance level decisively to restore stronger momentum and potentially open the door for a move toward the $11.6 and $12.8 Fibonacci resistance zones in the short term.
For now, traders remain focused on whether Chainlink can stabilize above the crucial $10 region as the market waits for a stronger catalyst capable of reigniting bullish momentum.