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LINEA Technical Analysis: Token Consolidates Despite $200M Ethereum Injection
LINEA, the native token of ConsenSys’ zkEVM Layer-2 network Linea, continues to face selling pressure despite recent major institutional developments. The token’s price action remains subdued, leaving traders questioning whether a local bottom is forming.
SharpLink Deploys $200M to Boost Linea Staking
Earlier this week, SharpLink announced a $200 million allocation of Ethereum (ETH) from its corporate treasury to Linea via ether.fi and EigenCloud. The funds are earmarked for staking and restaking programs tied to emerging services, including verifiable AI. This move highlights growing institutional interest in Linea and its expanding ecosystem.
Simultaneously, ConsenSys, the developer behind Linea, MetaMask, and Infura, confirmed that JPMorgan and Goldman Sachs will lead its upcoming IPO, further fueling optimism for the network’s long-term potential.
Technical Analysis Shows Price Under Pressure
Despite these fundamental catalysts, LINEA’s daily chart remains depressed, trading below all key moving averages. The 9-day EMA has acted as immediate resistance, rejecting every attempt to reclaim it since late September.
However, there are some early signs of stabilization. The Stochastic RSI recently flashed a bullish crossover in the oversold zone, which historically precedes short-term relief rallies. Yet previous crossovers in this trend failed to translate into a recovery above the 9-day EMA, signaling that caution is warranted.
Eyes on Consolidation and Breakout Potential
With renewed optimism following SharpLink’s $200 million restaking deployment and the ConsenSys IPO announcement, traders are hopeful that LINEA may be forming a local bottom. Price action is likely to consolidate near current levels before attempting a breakout.
For bullish momentum to gain traction, LINEA must form a higher low followed by a higher high, with a confirmed close above the EMA 9. A move above the 0.382 Fibonacci retracement level would signal that buyers are regaining control and potentially kickstart a relief rally.
