TLDR
- LINK remains capped below $16–$20 as descending trendline pressure persists.
- Strong demand near $12 continues to absorb sell-side liquidity.
- Macro compression hints at volatility expansion if structure is reclaimed.
- Elliott Wave suggests final corrective phase before potential base formation.
Chainlink(LINK) price continues to trade within a prolonged corrective phase, as multiple technical frameworks point to compression rather than trend resolution. Analysts highlight persistent resistance near $16–$20, while long-term demand around the $12 zone remains firmly defended. With volatility tightening across timeframes, the market is approaching a decisive structural moment that could shape the next major move.
Chainlink Price Stalls Below Key Daily Resistance
According to CRYPTOWZRD, the daily chart shows Chainlink price capped beneath a dominant descending trendline extending from the previous cycle high. This structure reflects sustained macro pressure, with repeated failures to reclaim former support near $16 and $20. These levels have now transitioned into overhead resistance, limiting bullish follow-through on rallies.
Despite this weakness, price continues to consolidate above a long-term demand zone between $11.80 and $12.00. This zone has repeatedly absorbed selling pressure, suggesting strategic accumulation rather than panic-driven distribution. However, the sequence of lower highs confirms that bullish momentum remains constrained.
LINK Daily Technical Outlook:$LINK closed indecisively. LINKBTC and BTC.D will play the lead role tomorrow. A retest of the $13.00 resistance followed by weakness would offer a short. Trading below that level would lead to sideways movement 🧙♂️ pic.twitter.com/3hpMJpGKH7
— CRYPTOWZRD (@cryptoWZRD_) January 28, 2026
Moreover, the analyst emphasized that a decisive breakout above the descending trendline is required to shift the daily bias. Until such confirmation occurs, upside moves are likely corrective in nature. As a result, Chainlink price remains vulnerable to extended consolidation or another controlled liquidity sweep toward support.
Macro Cycle Compression Signals Potential Expansion
Meanwhile, according to analyst Don, LINK’s macro structure reflects a recurring cycle of impulsive rallies followed by prolonged descending corrections. Each historical correction eventually resolved higher once price stabilized above rising macro support. The current structure mirrors this behavior, with LINK compressing inside a descending channel while respecting long-term demand.
The chart highlights declining wedge-like formations, where downside momentum gradually weakens before reversal. At present, price is positioned near the lower boundary of this structure, where selling pressure appears to be fading. This compression suggests volatility absorption rather than expansion, a condition often preceding trend transitions.
Additionally, projected targets on the macro chart point toward a potential recovery into the $25–$26 zone if structure is reclaimed. A broader extension toward $47–$48 aligns with previous cycle expansions. However, Don suggested that confirmation remains critical, as Chainlink price must first invalidate the corrective trend before any continuation scenario gains credibility.
Elliott Wave Signals Final Corrective Phase
Furthermore, the Elliott Wave analysis from analyst More Crypto frames LINK within a complex corrective sequence. The market is identified as navigating a B-wave phase, known for overlapping moves and false signals. This complexity explains recent erratic price behavior and limited directional clarity.
More so, the chart suggests LINK may be progressing toward wave c of (A), which typically completes a corrective structure. Fibonacci projections place the ideal target near $12.6, a level closely aligned with historical demand and prior reaction lows. This confluence increases the likelihood of a technical response if price revisits the zone.
Momentum indicators reinforce this view, showing weakening downside pressure rather than aggressive selling. If wave c completes as projected, the market would be positioned for a more durable base. Until then, Chainlink price remains technically delicate, with traders closely monitoring structure, momentum, and key support interactions across the broader crypto market.
