Chainlink Could Test $24.36 Resistance After ABC Correction as RSI Shows Oversold Levels and Whales Accumulate

• LINK consolidation near $21 with key resistance at $24.36

• RSI on the 4H at 18.94 signals oversold conditions and reduced short-term selling pressure.

• Exchange reserves at multi-year lows and ~2M LINK whale accumulation indicate investor positioning for a possible continuation.

Chainlink price analysis: LINK near $21 after ABC correction; watch $24.36 resistance and low exchange reserves for potential recovery — read technical levels and on-chain signals.

Chainlink trades near $21.00 after completing an ABC correction, with oversold RSI, whale accumulation, and resistance at $24.36 in focus.

• Chainlink nears $24.36 resistance after completing ABC correction and consolidating near support.
• RSI shows oversold conditions at 18.94 as LINK stabilizes with reduced trading participation.
• Whale accumulation and low exchange reserves indicate investor positioning for possible upward continuation.

LINK almost reached the 100% extension of the wave and looks like a completed correction to begin the week. Price action has consolidated near key support zones, and technical indicators point to oversold conditions as the market stabilizes after recent declines.

What is the current Chainlink price outlook?

Chainlink price is consolidating near $21 after an ABC corrective sequence; immediate resistance sits at $24.36 while support near $21.13 and $20.14 limits downside. On-chain metrics and a low 4H RSI suggest the correction may be complete and traders should watch for recovery signals.

How did the ABC correction shape LINK’s structure?

The chart shows LINK retreating from a recent high around $25.66 and tracing an ABC corrective pattern that reached the measured move. Fibonacci retracement resistance levels appear at $24.36, $23.55, and $22.46, with downside targets at the 1.382 and 1.618 extensions near $18.03 and $16.73 respectively.

Further downside projections aligned with the 1.382 and 1.618 Fibonacci extensions, but market participation has contracted. The 4-hour RSI reading of 18.94 confirms oversold conditions, while recent price consolidation near the 0.618 retracement shows buyers and sellers in balance.

Weekly structure also shows LINK approaching a long-term descending resistance line noted on broader timeframes. Elliott Wave mapping referenced a completed wave ii correction near $6.90, implying that the larger cycle may retain upward bias if inflationary macro conditions and network fundamentals remain supportive.

What do on-chain metrics and market data show?

CoinGecko data recorded LINK at $21.54 with a three-month gain of 63.9% and 24-hour volume near $1.33 billion, reflecting robust liquidity. Circulating supply is ~678,099,970 LINK with a max supply of one billion tokens. Exchange reserves reached their lowest levels since 2022, reducing immediate sell-side pressure.

On-chain observers noted nearly two million LINK added to whale wallets within a 48-hour window, indicating accumulation by larger holders. Low exchange balances combined with whale accumulation historically reduce volatility and can set the stage for continuation moves once liquidity re-enters the market.

When should traders watch for a confirmed recovery?

Watch for a daily close above $24.36 with rising volume as the primary confirmation for near-term recovery. A break and hold above $24.36 and $25.66 would invalidate deeper extension targets and increase the probability of a trend resumption. Conversely, a sustained move below $20.14 would reopen the path to extension levels near $18.03.

Frequently Asked Questions

Is the Chainlink correction complete?

The pattern suggests an ABC correction has completed with LINK consolidating near key support. Oversold RSI, lower exchange reserves, and whale accumulation support the idea that the correction may be near its end, though confirmation requires decisive price action above resistance levels.

How do on-chain reserves affect LINK price?

Lower exchange reserves typically reduce available sell pressure and can support higher prices if demand returns. In LINK’s case, reserves near multi-year lows paired with whale accumulation indicate fewer tokens ready to be sold on exchanges.

Key Takeaways

• Correction likely complete: ABC pattern and measured move suggest consolidation phase at support.
• Oversold indicators: 4H RSI at 18.94 implies short-term exhaustion for sellers.
• On-chain support: Low exchange reserves and whale accumulation indicate investor positioning for a potential continuation above $24.36.

Conclusion

Chainlink price action shows a completed ABC correction and consolidation near $21, with technical resistance at $24.36 and on-chain metrics supporting a potential recovery. Traders should watch volume and daily closes above resistance for confirmation, while maintaining risk controls for downside extension scenarios.

Published: 2025-09-22 | Updated: 2025-09-22 | Author: COINOTAG