- Chainlink trades near key Fibonacci support between $16.40–$17.36 amid ongoing correction.
- Resistance at $19.18–$19.68 remains critical for a potential short-term recovery.
- A breakdown below support could test the $14 region if bearish pressure continues.
Chainlink Faces a Three-Wave Pullback Amid Market Volatility
Chainlink (LINK) is showing a prolonged corrective structure, with a notable three-wave pullback unfolding since the Monday high, according to analyst More Crypto Online. As of October 22, 2025, LINK trades near $17.59, retreating into a key Fibonacci-based support zone between $16.40 and $17.36.
The 1-hour chart from Coinbase identifies this area as a potential turning point. However, the absence of a strong bullish reaction suggests consolidation may continue before a decisive move materializes.
Key Support and Resistance Zones for Short-Term Traders
Immediate resistance lies between $19.18 and $19.68, a zone traders will monitor for signs of a rebound or mini-breakout. Conversely, slipping below the $16.40 threshold could open the door for deeper declines toward $14.00, as predicted by some bearish analysts.
The descending trendline observed on the 1-hour timeframe reflects consistent selling pressure from local highs. Should bulls regain control above the lower trendline, chained confirmation around $17.70–$18.20 would be essential to validate recovery structure toward mid-range resistance.
Technical Overview: Fibonacci Levels and Momentum Indications
The ongoing ABC correction pattern fits within Elliott Wave dynamics, depicting a controlled selloff following prior impulsive gains. The lower boundary near $16.40 aligns with the 61.8% retracement level, historically a zone of buyer re-entry.
Meanwhile, momentum indicators show caution — the RSI oscillates around 42, hinting at a weak bullish divergence, while Stochastic oscillators remain neutral to bearish. For bullish confirmation, LINK must close consistently above $19.18 to reestablish higher-timeframe strength.
Volume trends remain subdued, reinforcing the likelihood of further range-bound activity before any potential breakout. Analysts caution that traders should await confirmation candles before considering new entries.
Investor Sentiment and Long-Term Perspective
Despite short-term uncertainty, Chainlink’s long-term fundamentals remain solid. Its continuous integration in real-world asset (RWA) tokenization and DeFi oracles boosts confidence among investors and institutions.
A recent CoinGape outlook sees Chainlink maintaining an average annual trading range between $22 and $23 through 2026, with periodic short-term corrections offering accumulation zones for long-term investors.
However, technical sentiment remains divided — CryptoWzrd highlighted that maintaining daily closes above $16.00 keeps the uptrend viable, while failing to do so would risk continuation toward $14.50 before a potential rebound.
For now, LINK’s setup demands patience. Traders are advised to monitor volume upticks and reaction strength near $16.40–$17.36 as the next defining levels determining short-term direction.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
