Chainlink (LINK) is showing a stronger bullish structure after completing a five-wave recovery from its recent low. The setup suggests another upward move could develop before a broader pullback. Improving momentum, changing derivatives positioning, and continued reserve accumulation are adding fresh context to the LINK price outlook.
LINK Price Completes Five-Wave Recovery Structure
Chainlink (LINK) is entering a closely watched technical phase after completing a five-wave advance from its September low. Crypto analyst Hov said the structure now provides the setup needed to monitor a potential larger pullback.
The analysis suggests traders should avoid chasing the current move and instead wait for confirmation around key retracement levels.
According to Hov, LINK previously needed another push higher into resistance before the broader structure could be considered complete.
That move has now occurred, creating what the analyst describes as a completed five-wave advance from the low. The next stage could therefore provide a clearer roadmap for evaluating the token’s larger market structure.
Source: Hov’s X Post
Hov expects at least another higher move through a potential Wave C or Wave 3 structure. However, the analyst also suggested that the latest high could represent an expanded Wave 4, which would leave room for another upward push toward $51 before a larger retracement develops. The key focus remains the eventual pullback rather than chasing short-term strength.
Also Read: LINK Price Eyes Breakout to $12.25 as Ecosystem Activity Strengthens Outlook
LINK Tests Key Resistance as Momentum Improves
From the TradingView chart analysis of the four-hour LINK chart, there is significant rebounding from sell-off pressure that drove Chainlink down to about $10.60 on September 16.
Green candles have been taking the token up to about $12.52. At present, the price is approaching the upper Bollinger band at $12.93, while the middle moving average at $11.73 stands out as support.
Source: TradingView
The momentum oscillators are also confirming the current bounce-back trend. The MACD blue line has crossed above the orange signal line, whereas the histogram has remained above the zero point.
Such formation indicates that the buying momentum is gaining strength; however, LINK faces the resistance at which more volume may be required to push the price upwards.
Consequently, based on the present technical framework, Chainlink lies at a key decision point. An extended move past the upper Bollinger Band would help to reinforce the rally and further Hov’s view of a potential new leg higher.
On the other hand, a rejection near resistance would start a bigger pullback being watched by the analyst.
Derivatives Activity Sends Mixed Signals
The Coinglass data shows a conflicting scenario in derivatives positioning for LINK. The trading volume fell by 14.91%, while open interest grew by 1.78%.
This disparity suggests that traders are still holding on to their positions in spite of reduced trade volume, and this could make the market more vulnerable to a quick break above resistance.
Source: Coinglass
Increasing open interest and lower volume can make the upcoming direction more significant due to the active positions held.
In case LINK is able to breach resistance, momentum can gather pace as more participants are involved in both spot and derivatives trading. However, failure to do so can also lead to position management and increase volatility.
Chainlink Reserve Adds Fundamental Support
The core activity is also becoming an additional factor for the LINK perspective. As reported by Onchain Lens, Chainlink has bought about 97,500 LINK for about $1.1 million to be used for the strategic reserve. The transaction is reported after the continued building up of the reserve.
Source: Onchain Lens’ X Post
Based on the data, the strategic reserve has built up 480,700 LINK, amounting to $5.5 million, in the past 30 days. Total holdings amounted to 5.96 million LINK, which is equivalent to $68.71 million.
Although building up a reserve doesn’t mean that there will be an increase in prices, this is another factor that can be considered.
What Happens Next for LINK?
Chainlink is currently in the process of experiencing an important stage in its overall market structure. According to the assessment by Hov, patience is advised as a possible retracement emerges, with $51 becoming the longer-term destination.
Short-term resistance to watch is around $12.90, MACD, positioning in derivatives, and the possible increase in buying volume.
Also Read: LINK Price Eyes $12 Recovery as Chainlink Expands Payment Infrastructur
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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