Chainlink (LINK) Shows Signs of Recovery Amid Market Uncertainty
Chainlink (LINK) is showing tentative signs of recovery following its recent dip to $17.30. However, buying momentum remains subdued as broader market uncertainty continues to dampen sentiment. While a decisive breakout is not yet confirmed, LINK has demonstrated resilience by avoiding a deeper correction, supported by strong dip-buying pressure.
Strength in Dip-Buying and Exchange Activity
Unlike other high-cap assets, LINK has held firm, with its 1-day chart revealing significant support from buyers. Notably, exchange supply has declined to a monthly low, reinforcing the possibility that the ongoing consolidation phase could precede a price surge.
Recent exchange flow data highlights increased retail accumulation, with 2.2 million LINK withdrawn at $17.80, prompting a 1.45% price rebound. If this trend continues, the $17–$18 price range could solidify as a key support zone, potentially driving further momentum and flipping the LINK/BTC pair bullish.
Prospects for ChainLINK Recovery
Several bullish indicators, including strong historical recoveries, declining exchange supply, and rising FOMO, suggest a potential rebound toward the $19 resistance level. However, sustaining this level remains the crucial test.
Over the past 24 hours, long liquidations have outpaced shorts by a factor of eight, as futures traders close positions, exerting additional supply pressure. Meanwhile, Open Interest (OI) has dipped by 1.65%, which may indicate reduced speculative trading—potentially setting the stage for a more stable uptrend.
Key Levels to Watch
The next few days will be critical for LINK’s price action. If speculative activity outweighs fundamental strength, a retracement to $15 could occur. Conversely, if LINK maintains stability and establishes firm support at its current level, a breakout past $21 could be on the horizon.
Investors should keep a close watch on market trends and key metrics to gauge the direction of LINK’s next major move.
