• Chainlink boosts ecosystem with MegaETH partnership, enhancing the use of oracle systems and DeFi by institutions. 
• LINK is just below the $16 support, as Fibonacci and VWAP indicators indicate that it has a chance to recover. 
• An analyst predicts that a LINK price above $20.30 is a sign of a breakout and will rise even higher.

Chainlink (LINK) is displaying signs of early recovery following a new integration with MegaETH. Analysts expect that it can recover and push towards the $22 level.

Powering Real-Time DeFi

Chainlink has announced that its Data Streams have been deployed to MegaETH. This is one of the largest developments in its Oracle network in 2025. Its integration enhances a first-of-its-kind oracle service that is directly embedded within MegaETH.

It enables the access of data updates with block times of 10 milliseconds and throughput of more than 100,000 transactions per second through decentralized applications. The integration can work with real-time applications of next-generation decentralized finance (DeFi), according to MegaETH Labs.

The collaboration is in line with the larger vision of Chainlink to make on-chain finance securely connected to high-speed data. This partnership has the potential to confirm Chainlink as a DeFi business at the institutional level.

Besides this, there has been an increase in Chainlink’s Reserve by 59,968 LINK and the total holding of the reserve is now 523,158 LINK. The accumulated tokens is through on-chain and off-chain revenues of enterprises using Chainlink services. This gradual build-up contributes to the sustainability of the network.

Bitcoin’s Shadow Looms Large

Analyst CryptoWZRD reported that LINK closed the day’s chart on a decline. According to the analyst, the movement of Bitcoin still determines the short-term movement of LINK.

CryptoWZRD further noted that the LINK support is the price of $16, and the prices at $19.30 and $20.30 are important levels to monitor. Breaking out of these levels will act as a significant indicator of a reversed trend and possibly the emergence of a new bullish trend.

According to the analyst, a confirmation of candles above the levels of $20.30 would open the door to $22 and higher. Till then, the near-term trend for LINK will probably be dictated by the overall market factors and investors’ response to the new inflows into the ecosystem.

Source: X

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Stabilizing at Key Support

Chainlink has experienced stability on the technical chart since its sharp fall following the rise to $25 in the previous quarter. The Fibonacci retracement levels indicate the important support and resistance levels.

The retracement at 0.5 is around the $16 zone. It serves as a pivotal point to a potential reversal should buying strength resume again.

At the time of writing, the VWAP (Volume Weighted Average Price) of the session is at $17.9. This suggests that LINK is trading at a lower price than the fair value.

An actual breakout above the VWAP would justify a change in market position. It would signal a shift from bearishness to a neutral outlook. This would open up to a test of $19 and, in the long run, a test of 22.

Source: TradingView

Repositioning for a Rally

Coinglass data reflects a contradictory yet better perspective. The trading volume of LINK futures has increased by 1.68% to $1.62 billion, which shows a fresh surge in trading activity. In contrast, open interest reduced by 5.13% to $685.33 million. This indicates that some traders have started closing some of their positions.

Such a mix is commonly an indication of a decrease in selling pressure and makes it possible for spot prices to recover easily. Also, it indicates a possible rise in the number of traders repositioning their trades. If the trend in buying momentum persists, derivatives flows could provide additional support. This could lead to a short-term rally toward the next major resistance at $22.

Source: Coinglass

Also Read | Chainlink Bulls Regain Control, Major Rally Building Toward $30 Zone