[DigitalToday reporter Yoonseo Lee] Chainlink (LINK) has entered a retest zone near $7.05, a key support level, as it has been in a recent weak trend.

On July 9 (local time), blockchain media outlet The Crypto Basic said the price zone is an area where buying interest has flowed in multiple times in the past, and is seen as a turning point that will determine whether a short-term rebound occurs.

Chainlink is moving in a pattern similar to the broader cryptocurrency market’s weakness. On the daily chart, it failed to defend its peak and then continued to edge down gradually. It briefly regained $8 early this week, and rose as high as $8.17 intraday on July 7, but failed to hold the uptrend.

The area near $8.17 overlapped with the 50-day simple moving average, which has acted as a resistance level in recent weeks. As it failed to break through that resistance, downward pressure increased again. Over the past 3 days, Chainlink fell about 4 percent further and then rebounded slightly on the day.

Market participants are watching the reaction around $7.05. The zone is a key support level that has absorbed weakness multiple times, and it rebounded around this level during a sharp market drop on Feb. 6. It also reduced declines at the same level on June 6 and 25. Analysts see whether the support can halt the downtrend again as decisive.

If it holds $7.05, a short-term rebound target of $9.47 is being discussed. Based on the current price of $7.73, that is 22 percent higher, and it is 33 percent above the support level. Some also see room to open up to $10.80, a level not seen since May, if broader market sentiment improves and upward momentum continues.

All such scenarios assume $7.05 holds. If that area breaks, it could fall again to $6.60, the next demand zone. Analysts view the current zone as one of the past starting points for rebounds, but see the support structure itself as potentially weakening if it breaks lower.

A rebound catalyst is still not strong. Chainlink is rebounding on the day, but market participation to support it has instead declined. Over the most recent 4 hours, spot trading volume fell 5 percent to $5.11 million, and futures trading volume over the same period fell 14 percent to $39.35 million.

A price rebound amid shrinking trading is generally interpreted as a signal that it may end as a brief relief rally before downward pressure increases again. Chainlink is continuing attempts to rebound in the short term, but whether the trend actually turns is likely to require confirmation that the $7.05 support holds along with a recovery in trading.