After three consecutive days of decline, Chainlink's token LINK has returned to a support zone that it has held multiple times since February 2026. On June 3, LINK briefly fell to $8.18 before recovering to around $8.55, a daily drop of 4.5%. Despite the price weakness, trading volume rose to $478 million, indicating increased market attention.
$8.05 becomes the short-term focus
From the daily chart, LINK remains in a downtrend, with the price continuing to trade below the 200-day moving average. However, the area around $8.05 has become the most closely watched level.
This price level has provided support multiple times since February. If it holds, LINK may replicate its previous rebound patterns; however, if it breaks below this level on the daily chart, the downside potential could open up further.
On-chain data indicates a wait-and-see attitude among those holding coins.
Data from on-chain platform CryptoQuant shows that LINK exchange reserves decreased by approximately 197,000 tokens in the past week. This typically means that some tokens have been transferred out of trading platforms, and the market tends to interpret this as a signal of holding or accumulating.
During periods of price pressure, a decline in exchange reserves often indicates that selling pressure has not increased accordingly. This makes the support level around $8 more closely watched by the market.
Derivatives betting shifts to long
Data from derivatives platform CoinGlass shows that LINK's position-weighted funding rate has turned positive, at 0.0077%. This indicates an increase in long positions in the market, with some traders betting on a price rebound.
Looking at the liquidation distribution, there are approximately $1.98 million in long positions around $8.16, and approximately $1.55 million in short positions around $8.67. The current position structure indicates a slight advantage for the longs, but the overall trend strength remains weak.
Data shows that LINK's ADX has dropped to 20.37, below the common 25-point threshold, indicating insufficient upward momentum. For the market, whether the price can continue to hold above $8.05 will be a key indicator of whether a short-term correction is imminent.
