Chainlink (LINK) has entered a notable corrective phase after delivering a strong advance earlier in September. According to crypto analyst More Crypto Online, the current decline may represent wave (A) of an ABC pullback, suggesting that the token could experience further volatility before establishing a clearer recovery structure.
The analyst has highlighted the $12.30-$13.21 region as the first resistance zone traders should monitor. A sustained recovery above this area could strengthen the case for a rebound, while continued rejection may keep LINK under pressure as the corrective structure develops.
Source: More Crypto Online’s X Post
LINK Price Retreats From September High
TradingView data shows a significant change in Chainlink’s short-term price structure. LINK climbed from below $9.50 before accelerating toward a September high near $13.70. However, the rally was followed by aggressive selling, producing a sequence of lower lows and pushing the token toward approximately $11.56.
The decline has brought LINK back into the previous late-August consolidation range. Such a move can be important from a technical perspective because former trading ranges often become areas where buyers attempt to defend price.
Source: TradingView
Momentum indicators currently reflect the strength of the sell-off. The Relative Strength Index has fallen to 31.58, approaching oversold territory. Meanwhile, the MACD has moved deeper into bearish territory, with its signal line declining and red histogram bars expanding.
Although these readings indicate strong selling pressure, the depressed RSI also suggests that the market could be approaching a point where downside momentum begins to stabilize. However, oversold conditions alone do not guarantee an immediate reversal.
Also Read: Chainlink Price Gains 5% as Bottomline Partnership Boosts Sentiment
Market Activity Shows Cautious Positioning
Chainlink’s derivatives market is also showing signs of reduced participation. According to CoinGlass data provided in the analysis, trading volume has declined to $507.51 million, while open interest has slipped to $645.90 million.
The simultaneous decline in volume and open interest suggests that traders are becoming more cautious following LINK’s sharp retreat. Falling open interest can also indicate that leveraged positions are being closed, reducing some of the speculative pressure that had built up during the previous rally.
Source: Coinglass
For Chainlink, the next phase could therefore depend on whether buyers return as selling pressure eases. A recovery in volume alongside rising open interest would provide stronger confirmation that market participants are positioning for another directional move.
LINK Network Growth Strengthens Price Outlook
Despite the weaker price action, Santiment Intelligence data points to continued strength in Chainlink’s network activity. The number of new addresses increased substantially during late August, rising from around 974 per day in early August to a peak of 1,601 before settling near 1,140.
This means a meaningful portion of the earlier increase has remained intact. Active addresses have also shown resilience, moving from approximately 3,599 to a peak of 5,572 and recently standing near 4,821.
Source: Santiment Intelligence’s X Post
Santiment noted that this development appears specific to Chainlink when compared with recent activity trends for Solana and Ethereum. That makes the network-growth data particularly relevant because it suggests that LINK’s ecosystem continues to attract and retain blockchain activity even as its market price undergoes a correction.
However, address metrics have limitations. They cannot determine whether existing users are returning, whether new participants are entering the network, or whether a smaller group of users is simply conducting transactions more frequently.
What Happens Next for LINK?
Chainlink’s next major move could depend on how price behaves around the current support region and whether the proposed ABC correction develops as expected. A stabilization near current levels could give buyers an opportunity to rebuild momentum toward the $12.30-$13.21 resistance zone.
A decisive break above that region would improve the short-term technical outlook and potentially signal that the correction is losing strength. Conversely, continued lower lows would keep the bearish structure intact and expose LINK to additional downside risk.
For now, traders are likely to watch the RSI, MACD, trading volume, and open interest alongside network activity. The combination of oversold momentum and resilient on-chain participation could provide an important backdrop if buyers attempt to regain control.
Also Read: Chainlink Price Eyes $13.68 Resistance Amid Rising Trading Activity
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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