Chainlink (LINK), a decentralized oracle network that connects smart contracts with real-world data, is exhibiting renewed bullish momentum after completing a five-wave upward movement from its recent lows, according to market analyst Hov. The latest technical setup suggests that the token could see another upward push before entering a broader retracement phase.
Technical structure hints at possible breakout
Hov, a crypto market analyst, highlighted that Chainlink has finished a significant five-wave rise from its September low, a structure often used in Elliott Wave Theory to determine cycle completions. This development sets the stage for monitoring a potential larger pullback. At this juncture, traders are being cautioned to avoid chasing momentum and instead look for confirmation near crucial retracement or resistance levels.
Hov noted that while LINK previously required another advancement into resistance to finalize the structure, this has now materialized. With the wave sequence considered complete, the next move will clarify whether a higher leg forms or if the market prepares for a meaningful correction.
The analyst anticipates another upward move, potentially as part of a Wave C or Wave 3 formation. Hov also mentioned the possibility that the recent high marks an expanded Wave 4, leaving room for an additional surge toward $51 before a broader retracement emerges. The main focus remains the pullback, urging traders to be patient amid near-term volatility.
According to Hov, “Chainlink is now positioned for a potential long-term move up to $51, but patience around resistance levels is essential as a retracement may be on the horizon.”
Key price levels and technical signals
Recent four-hour chart analysis from TradingView indicates a robust rebound after Chainlink dipped to $10.60 on September 16. Bullish candles have propelled prices to about $12.52, approaching the upper Bollinger Band at $12.93. The middle band’s moving average at $11.73 is acting as support.
Momentum indicators are confirming the recovery. The MACD blue line has crossed above the orange signal line, and the histogram has remained in positive territory, reinforcing signs of increasing buy activity. However, the price faces a crucial test at resistance, and higher trading volumes may be needed for further upward momentum.
| Key Level | Current Value | Trend/Note |
|---|---|---|
| Recent Low | $10.60 | Support (Sept 16) |
| Current Price | $12.52 | Rebound ongoing |
| Upper Bollinger Band | $12.93 | Key resistance |
| Moving Average Support | $11.73 | Medium-term support |
| Long-term Target | $51 | Potential future resistance |
A break above the upper Bollinger Band would affirm the rally, while a failure at resistance might trigger the anticipated pullback.
Derivatives and reserve accumulation add to outlook
Recent Coinglass data reflects mixed sentiment in the LINK derivatives market. Trading volume dropped by 14.91%, but open interest increased by 1.78%. This suggests that although fewer trades are occurring, traders are maintaining open positions—often an indicator that the market is preparing for a decisive price move.
Higher open interest, paired with falling volume, can intensify upcoming market reactions, especially near resistance levels. If LINK breaks out above resistance, both spot and derivatives participants may drive momentum higher, but failure could lead to increased volatility as traders adjust positions.
Chainlink’s strategic reserve activity is also making headlines. Onchain Lens, an on-chain data provider, reported that Chainlink purchased approximately 97,500 LINK worth $1.1 million for its reserve, bringing recent 30-day accumulations to 480,700 LINK, valued at $5.5 million. Total reserve holdings now stand at 5.96 million LINK, worth $68.71 million.
While building reserves does not guarantee immediate price increases, it is considered a noteworthy factor when analyzing the token’s outlook.
Mini dictionary: Onchain Lens, an analytics provider specializing in blockchain and on-chain data tracking, helps investors monitor large token movements, treasury activities, and strategic holdings across decentralized networks.
As per the latest data, “The strategic reserve now holds 5.96 million LINK, valued at $68.71 million, following steady accumulation over the past month.”
Analyst urges patience near short-term resistance
Analyst Hov recommends patience for traders as LINK navigates critical resistance zones. The near-term level to monitor remains $12.90, with momentum signals, derivatives market positioning, and reserve accumulation all contributing to Chainlink’s current technical landscape. If the breakout manifests, Hov views the longer-term target at $51 as viable, yet a retracement remains a tangible risk for participants at this juncture.
