Linea, the zkEVM Layer-2 network from ConsenSys, has been buoyed by significant positive news, including a massive investment from SharpLink and plans for a major Initial Public Offering (IPO) by its parent company. Despite these bullish catalysts, the network’s token has faced persistent downward pressure, leaving investors to analyze if a bottom is forming.

The wave of optimism began when SharpLink announced it would allocate $200 million worth of Ethereum (ETH) from its corporate treasury to Linea. The funds are designated to support staking and restaking programs through platforms like ether.fi and EigenCloud, targeting emerging services such as verifiable AI. This major deployment coincided with confirmation that ConsenSys, the firm behind Linea and popular tools like MetaMask, is preparing for an IPO led by banking giants JPMorgan and Goldman Sachs.

Technical Picture Remains Under Pressure

Despite these strong fundamental developments, Linea’s price chart tells a different story. The token continues to trade below all key moving averages on the daily chart. The 9-day Exponential Moving Average (EMA) has acted as immediate resistance, rejecting every recovery attempt since late September.

However, recent trading sessions show signs that the downward momentum could be slowing. The Stochastic RSI, a key momentum indicator, has flashed a bullish crossover while in the oversold zone—a signal that often precedes price stabilization or a relief rally. It’s worth noting that the last two similar crossovers during this trend failed to generate enough buying pressure to reclaim the 9-day EMA.

Given the renewed optimism from the institutional news, there is growing hope that Linea may be establishing a local bottom. For a bullish reversal to take hold, the price must form a higher low followed by a higher high, with a confirmed close above the 9-day EMA. A reclamation of the 0.382 Fibonacci level would provide the clearest signal that buyers are regaining control.

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