LINK Eyes Recovery as Accumulation Trends Strengthen

• LINK trades in a range as buyers defend $16.98 while resistance near $18.78 caps upside.
• Sharp drop in LINK open interest to $641M signals reduced leverage and cautious sentiment.
• Consistent exchange outflows show long-term LINK accumulation easing selling pressure.

Chainlink’s (LINK) recent price action shows the token attempting to recover after a steep correction from the $23.72 swing high. The cryptocurrency trades near $17.60, where short-term buyers are showing signs of re-entry. 

However, LINK remains trapped between key resistance and support levels, indicating a cautious market tone. The 4-hour chart suggests that traders are waiting for a decisive breakout before committing to a new direction.

Price Behavior and Key Levels

The current structure reflects a recovery phase within a broader corrective pattern. LINK bounced modestly after testing support around $16.98, which aligns with the 50% Fibonacci retracement zone. This reaction hints at early demand forming near this level. 

However, the price faces a stiff barrier between $17.96 and $18.78, where both the 50 and 100 exponential moving averages converge. A break above these levels could propel LINK toward $20.84, a major retracement zone linked to the previous breakdown area.

Failure to surpass these resistance levels keeps the short-term outlook neutral. If LINK falls below $16.98, traders could see further declines toward $15.39 or even $13.42. These levels represent critical support zones that have historically attracted buyers. Hence, maintaining stability above $16.98 remains essential for the bullish camp to regain control.

Open Interest Reflects Market Caution

Chainlink’s open interest data highlights a cooling trend in speculative trading. Open interest fell sharply from its mid-2024 peak above $1.5 billion, recorded when LINK traded near $27. 

As of October 23, 2025, open interest stands at $641 million while LINK trades around $17.20. This drop suggests traders are reducing leverage exposure, reflecting market caution and reduced volatility expectations.

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Consequently, this contraction phase could precede a volatility expansion once new directional momentum emerges. Historically, periods of declining open interest have been followed by notable price swings, suggesting that the next major movement could develop as participation rebuilds.

Exchange Flows Point Toward Accumulation

Besides futures data, on-chain metrics also show a constructive trend. Chainlink has recorded consistent outflows from exchanges throughout 2025, indicating accumulation by long-term holders. Sporadic inflow spikes between January and August coincided with minor price rebounds, suggesting short-term profit-taking rather than large-scale distribution.

On October 23, 2025, LINK registered a $592.34K net inflow while trading near $17.59, hinting at renewed short-term activity. However, the broader outflow trend suggests reduced selling pressure, often preceding accumulation-driven rallies. 

Hence, while LINK remains under key resistance, improving exchange flow dynamics and waning speculative leverage may lay the groundwork for a gradual recovery phase once momentum shifts favorably.

Technical Outlook for Chainlink (LINK)

Chainlink’s price structure remains in a corrective phase as the token consolidates between established Fibonacci and EMA levels. The 4-hour chart highlights a tight trading range where price compression could soon give way to a decisive move.

• Upside levels: $17.96 (50 EMA), $18.78 (100 EMA), and $20.84 (Fib 0.786) mark immediate resistance hurdles. A confirmed breakout above $20.84 could pave the way for a retest of $22.00 and $23.72, the previous swing high zone. Sustained strength beyond $23.72 would signal renewed bullish momentum and potentially establish a higher low for the next cycle leg.
• Downside levels: $16.98 serves as the critical pivot, representing the 50% Fibonacci retracement support. Below this, $15.39 (Fib 0.382) and $13.42 (Fib 0.236) define secondary support layers. Losing these levels could expose LINK to a deeper correction toward the $10.24 cycle low, extending the retracement structure.
• Resistance ceiling: $18.78 remains the key dynamic level to flip for early bullish confirmation. A close above this EMA cluster would indicate a potential trend reversal and trigger a recovery toward the upper Fibonacci range.

Will Chainlink Rebound?

The October outlook depends on whether LINK can sustain above $16.98 and overcome the EMA resistance cluster. Consolidation around $17.50 suggests market indecision, with open interest cooling and exchange outflows pointing toward long-term accumulation. 

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If buyers manage to defend support and reclaim $18.78–$20.84, LINK could resume its mid-term uptrend targeting $22–$23.72. However, failure to hold the $16.98 base would risk an extended slide to $15.39 or even $13.42. For now, Chainlink remains in a pivotal zone where accumulation and reduced volatility may precede the next significant breakout.