- Chainlink’s $16.39 level remains the critical threshold keeping the directly bullish scenario valid amid market uncertainty.
- Resistance between $17.65 and $18.45 could shape LINK’s short-term trajectory and broader Elliott Wave outlook.
- Consolidation of the trading at around #17.20 is a sign of a possible momentum change towards a break out or correction.
Chainlink (LINK) is still lingering around its structural support with traders monitoring whether the asset will manage to maintain its station above $16.39 or fall prey to fresh selling pressure that may widen the current corrective action.
Analyst Highlights the $16.39 Level as the Line in the Sand
In a recent market update shared by More Crypto Online (@Morecryptoonl), the analyst emphasized that the directly bullish yellow scenario for Chainlink remains valid only if the price holds above $16.39. The post outlines a detailed Elliott Wave count, suggesting that LINK’s next major move depends on its ability to defend this technical base.
The analysis indicates that this level is a critical structural line that corresponds to the 78.6% Fibonacci retracement of the prior upward move. So far, this region has acted as micro support, preventing the token from rolling over completely. But despite this defense, no impulsive rebound has materialized to indicate that buyers have regained decisive momentum.
If the price closes beneath $16.39, the analyst cautions that a Z-wave correction may occur, which could ultimately drive the consolidation all the way back to $15.62 or even $13.35. This would suggest that the macro (2) wave structure is still not complete, which would allow for bearish sentiment to persist in the short term.
Resistance Between $17.65 and $18.45 Shapes Short-Term Market Outlook
The structure of Chainlink clearly indicates the building of a range between $17.65 and $18.45, an area that must be recognized as immediate resistance. A strong push into this zone followed by rejection could confirm the continuation of the corrective wave pattern. However, a break above $18.45 could pave the way for fresh bullish activity.
With a tight oscillation between $16.9 and $17.4, recent trading has been muted.This is indicative of indecision among participants-no commitment to larger positions without confirmation. Volume has remained low, consolidating the market in preparation for a decisive move.
This range is representative of the traditional accumulation and testing phase. Traders are now focused on whether Chainlink can close above the short-term barrier to confirm that the current pullback has likely reached exhaustion. While this confirmation has not occurred, the sideways pattern is bound to continue.
Market Stability and Trader Sentiment Show Caution
As of writing, CoinGecko data shows Chainlink priced at $17.19, representing a minuscule (+0.1%) gain in price over the last 24 hours (with a 24-hour price range of $16.83-$17.40). Its market cap recently was just below $11.97 billion, which, together with its price, confirms its status as one of the premier decentralized oracle assets.
Sentiment metrics display cautious optimism. Binance’s long/short ratio sits at 2.5286, and top trader data indicates 2.9635, showing a continued long bias among retail and institutional participants. OKX data mirrors this trend with a 1.94 ratio. However, such elevated long positioning could increase the risk of short-term corrections if momentum weakens.
Liquidation activity remains limited, with approximately $14,200 in long positions and $13,970 in shorts liquidated over one hour—evidence of market balance. This neutrality reinforces the view that Chainlink is consolidating rather than trending, awaiting a breakout above $17.50 or a drop below $16.80 to establish the next directional move.
