Chainlink (LINK) is exhibiting a prolonged corrective structure, characterized by a notable three-wave pullback that has been unfolding since Monday's high. This observation comes from analyst More Crypto Online. As of October 22, 2025, LINK is trading near $17.59, retreating into a crucial Fibonacci-based support zone situated between $16.40 and $17.36.
The 1-hour chart from Coinbase indicates this area as a potential turning point. However, the current lack of a strong bullish reaction suggests that consolidation might persist before a decisive move occurs.
Key Support and Resistance Zones for Short-Term Traders
Immediate resistance is identified in the zone between $19.18 and $19.68, which traders will closely monitor for signs of a rebound or a minor breakout. Conversely, a fall below the $16.40 threshold could lead to deeper declines, potentially testing the $14.00 region, as anticipated by some bearish analysts.
$LINK: Since the Monday high, price has formed a three-wave pullback, with the current micro support zone between $16.40 and $17.36. So far, there has been no clear bullish reaction from this area. Immediate micro resistance is found between $19.18 and $19.68. pic.twitter.com/KrcXlYCz5u
— More Crypto Online (@Morecryptoonl) October 22, 2025
The descending trendline observed on the 1-hour timeframe reflects consistent selling pressure from local highs. If bulls manage to regain control above this lower trendline, confirmation around $17.70–$18.20 would be essential to validate a recovery structure towards mid-range resistance.
Technical Overview: Fibonacci Levels and Momentum Indications
The current ABC correction pattern aligns with Elliott Wave dynamics, indicating a controlled selloff following previous impulsive gains. The lower boundary near $16.40 corresponds with the 61.8% retracement level, which has historically served as a zone for buyer re-entry.
Meanwhile, momentum indicators suggest caution. The RSI is oscillating around 42, hinting at weak bullish divergence, while Stochastic oscillators remain neutral to bearish. For bullish confirmation, LINK needs to achieve consistent closes above $19.18 to re-establish strength on higher timeframes.
Volume trends are currently subdued, reinforcing the likelihood of continued range-bound activity before any potential breakout. Analysts advise traders to await confirmation candles before considering new entries.
Investor Sentiment and Long-Term Perspective
Despite short-term uncertainty, Chainlink’s long-term fundamentals remain robust. Its ongoing integration into real-world asset (RWA) tokenization and DeFi oracles continues to foster confidence among both investors and institutions.
A recent outlook from CoinGape suggests that Chainlink could maintain an average annual trading range between $22 and $23 through 2026. This perspective also anticipates periodic short-term corrections that may offer accumulation opportunities for long-term investors.
However, technical sentiment is currently divided. CryptoWzrd has highlighted that maintaining daily closes above $16.00 is crucial for keeping the uptrend viable. Failing to do so could risk a continuation of the downtrend toward $14.50 before a potential rebound.
For the present, LINK’s setup necessitates patience. Traders are advised to monitor upticks in volume and the strength of reactions near the $16.40–$17.36 support zone, as these levels will be critical in determining short-term direction.