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Chainlink’s [LINK] Recovery in Motion? Key Levels to Watch
February 20, 2025
Unlike its rivals, LINK has managed to avoid a deeper correction, providing it with an added advantage. However, the question remains whether this resilience will translate into a breakout.
Despite a weak recovery attempt following a drop to $17.30, buying momentum has yet to gain significant traction. The lingering market-wide fear, uncertainty, and doubt (FUD) continues to weigh heavily on sentiment, preventing a decisive rebound from taking place.
In contrast to other high-cap assets, LINK has successfully resisted a more substantial correction, as evident in its strong “dip-buying” pressure on the 1-day chart. According to data, exchange supply has continued to decline, reaching a monthly low, which further supports the hypothesis that the current consolidation phase may be paving the way for a potential price surge.
Notably, net exchange flows have indicated rising retail accumulation, with a significant amount of LINK withdrawn at $17.80, driving a 1.45% price increase. Should this trend persist, the $17-$18 range could establish itself as a firm support zone. As renewed fear-of-missing-out (FOMO) takes hold, momentum may shift to the upside, ultimately flipping the LINK/BTC pair bullish.
Is Chainlink [LINK] on the path to recovery? With positive technical signals, historical recoveries, and rising FOMO, a rebound to $19 resistance appears plausible. However, it is crucial that this level is sustained. Over the past 24 hours, long liquidations have outpaced shorts by an impressive 8x as futures traders close positions, resulting in increased supply pressure. In contrast, a 1.65% dip in Open Interest (OI) may signal reduced speculation and potentially lay the groundwork for a more stable uptrend.
The coming days will prove pivotal for Chainlink [LINK]. If speculation takes precedence over fundamentals, we could see a pullback to $15. Conversely, if key metrics remain steady and the current price establishes support, a breakout beyond $21 might be within reach.
As traders navigate this critical juncture, it is essential to monitor these key levels closely.
Source: ambcrypto.com
