Chainlink Price Bounces off $7.20 Support as Sellers Lose Momentum

Chainlink (LINK) has been experiencing price weakness in recent days, falling about 4% over the past 24 hours. Despite this, indicators suggest that the altcoin may be due for a bullish reversal. According to data from Bitget, Chainlink's price broke below an ascending trend channel in late May and has since retested its support level at $7.20.

This is the third time LINK has tested this level, and it appears that sellers are losing steam. The momentum indicator has declined and turned negative, and four-hour candles on TradingView show consolidation around $7.280 with MACD bars becoming faint, indicating exhaustion among bears.

In addition to price action, Chainlink's on-chain metrics are also starting to align with a potential bullish reversal. Chainlink Spot ETFs have seen outflows turn positive again after recording their first daily outflow of $490K on June 22nd. Moreover, the Chainlink Reserve has accumulated 593,088 LINK for over $4.60 million in the month of June, helping create a supply crunch.