Chainlink moves toward a breakdown retest as market structure weakens and open interest resets. Open interest volatility shows leveraged trading shifts that align with major LINK price swings. LINK trades at $12.11 after a sharp daily decline while broader sentiment leans defensive.
Chainlink enters a corrective phase as its market structure shows pressure at a critical breakdown zone. Current data suggests weakened demand while derivatives positioning transitions into a reset, raising expectations of further downside movement.
Chainlink Tests Breakdown Retest Zone
Chainlink appears to be approaching a breakdown retest after losing its mid-channel support within a multi-year ascending structure. The recent rejection around the $14 zone indicates continued weakness near a level that acted as an important pivot over previous months.
An update from Ali (@ali_charts) notes that Chainlink could be retesting this rejected structure before targeting lower support. The chart presents LINK struggling beneath a former trendline that once formed a stable part of the price range. A return toward the underside of this structure suggests that sellers maintain control for now.
Price action reflects a series of lower highs since the peak near $28, reinforcing bearish momentum. If LINK cannot reclaim the broken channel, the pattern points toward downside continuation. Current projections place a potential target near the $8 support region.
Derivative Positioning Indicates Renewed Market Reset
A separate chart shows the relationship between Chainlink’s price and open interest over time. The pattern reveals that derivatives activity often preceded major swings, with leveraged positions driving much of LINK’s volatility during several cycles.
In earlier phases, open interest was low even as the price declined, indicating limited derivatives participation. As market conditions stabilized, open interest rose, often aligning with transitional price movements or brief rallies that lacked sustained strength.
The latter portion of the chart shows open interest reaching peaks above $1.5 billion as LINK surged toward $40–$50. This increase reflected high speculative exposure. Subsequent declines in both price and open interest suggest a broad reset as leverage unwound and traders shifted to more conservative positioning.
Current Market Readings Reflect Broader Pullback
Chainlink as of writing, trades at $12.11 today with a 24-hour volume of $635,033,456. The asset records a 6.97% daily decline and a 2.96% decline over seven days, signaling a steady cooling across the market.
These moves align with a broader reduction in speculative flows as open interest contracts. The price action suggests that bullish momentum remains weak while sellers continue to react near resistance zones following failed attempts to reclaim higher levels.
With both the breakdown retest and derivative reset aligning, traders observe whether LINK approaches the projected support near $10.50–$9.00 before any potential stabilization. The technical setup continues to reflect a cautious environment as the market adjusts.