Chainlink’s [LINK] recovery in motion? Key levels to watch

There are early indications of a potential recovery for Chainlink [LINK] as its price starts to show signs of improvement, rebounding from a low of $17.30. Despite this positive momentum, the prevailing fear, uncertainty, and doubt (FUD) in the market is still impacting overall sentiment, making a definitive comeback challenging.

Unlike many other major cryptocurrencies, LINK has managed to avoid a significant decline, showcasing noticeable buying interest during market dips as seen on its 1D chart.

The decreasing exchange supply of LINK, reaching a monthly low, suggests that the current consolidation phase could be a precursor to a forthcoming price surge.

Furthermore, a rise in retail accumulation is evident from the net exchange flows data, with 2.2 million LINK withdrawn at $17.80, resulting in a 1.45% price uptick.

If this trend continues, the range of $17–$18 might solidify as a strong support range, potentially fueling momentum to turn the LINK/BTC pair bullish amid renewed Fear of Missing Out (FOMO) sentiment.

Is Chainlink [LINK] Heading Towards Recovery?

Considering the positive technical indicators, strong historical recovery patterns, retail outflows, and growing FOMO sentiment, a move towards the $19 resistance level seems feasible. Nonetheless, the real challenge lies in maintaining stability at this level.

In the last 24 hours, there has been a significant increase in long liquidations compared to short positions by a factor of 8, as futures traders liquidate positions, contributing to selling pressure.

However, a 1.65% decline in Open Interest (OI) could suggest a reduction in speculative activities, potentially paving the way for a more sustainable uptrend.

The upcoming days will be crucial for Chainlink [LINK]. If speculation overshadows fundamentals, a retracement towards $15 could materialize.

On the contrary, if key metrics hold steady and the current price level establishes a solid support base, breaking above $21 could become a realistic target. Stay vigilant and monitor the developments closely.