LINK’s Price Analysis

• LINK’s decline to $13.18 marked a 13.6% correction from $15.25, following a previous high of $16.34.
• Fibonacci retracement levels indicated key zones: 0.236 at $14.17, 0.382 at $14.50, and 0.618 at $15.00.

Chainlink (LINK) recently recovered from a market-wide downturn, moving from $13.18 to $15.25 amid increased volatility and trading volume.

A surge in wallet holdings and high trading activity indicates institutional accumulation or renewed investor confidence.

The decline to $13.18 indicated profit-taking after a strong rally, marking a 13.6% correction from $15.25. Historical patterns suggest altcoin pullbacks, similar to Ethereum’s, could stabilize prices. If support holds at $13.18, LINK’s market positioning may strengthen.

LINK’s Rebound Past $15.25: Strength or Trap?

The 15.8% recovery to $15.25 indicates strong demand. The Fibonacci levels show critical zones: 0.236 at $14.17, 0.382 at $14.50, and 0.618 at $15.00.

Surpassing $15.00 suggests strength; if momentum continues, the next target may be $16.34. If it fails to hold above $15.00, LINK may retrace to $14.50 or $13.18.

Volume analysis supports the breakout with 25.137M at press time, double the 9-day SMA of 12.568M. Sustained volume above 25M may drive LINK to $17.00.

The MACD indicator provided further confirmation, shifting from a bearish 0.335 during the dip to 0.190, with a bullish crossover at 0.145. Widening histogram bars suggest growing momentum.

The ROC rose to 10.78, reflecting renewed price momentum. A sustained ROC above 10 could lead LINK toward $16.34, while a decline below 5 may indicate weakening momentum, heightening the risk of dropping to $13.50.

LINK’s Market Sentiment

Open Interest for LINK ranged from 4.597M to 4.92M, peaking at 4.92M coinciding with the $15.25 rebound, indicating new long positions. The dip to 4.59M near the low of $13.18 reflected liquidations and position closures.

This pattern parallels Bitcoin’s open interest shifts during market volatility. Increasing open interest at $15.25 suggests bullish sentiment; sustained growth above 4.92M could push LINK to $16.34. A drop below 4.59M may signal renewed selling, potentially lowering LINK to $13.00. Monitoring open interest is crucial to understanding sentiment shifts.

Buying Pressure vs. Selling Strength

LINK’s aggregated spot cumulative volume delta (CVD) fell from -3.7M to -6.653M during the $13.18 drop, indicating strong selling. Recovery to -3.653M at $15.25 shows a shift towards accumulation, easing selling pressure.

A positive CVD move above -3M could indicate bullish control, potentially pushing LINK toward $16.34. However, a drop below -6.653M may initiate renewed selling, potentially bringing LINK back to $12.00.

In conclusion, LINK’s price action shows increased volatility, with a 13.6% correction followed by a 15.8% rebound. Key indicators suggest potential upside, targeting $16.34-$17.00 if momentum persists.