Chainlink (LINK) — the token of the decentralized oracle network that connects blockchains to external data — remains under renewed selling pressure, and Elliott Wave projections allow for another drop to $9.49 or lower before the token may resume its broader upward move. Futures liquidation data reveals repeated leverage flushes, with June and August recording sharp spikes across both long and short positions. LINK's declining structure faces resistance around $12, while Fibonacci levels provide potential support references during an extended correction.

Elliott Wave Structure Leaves Room for Another Decline

Elliott Wave analysis labels market cycles as a sequence of waves, and which label an analyst assigns to a correction typically determines how much further downside the count can accommodate before the broader trend is called into question.

Analysts at More Crypto Online recently examined LINK's ongoing correction through an Elliott Wave lens. In their view, additional downside remains acceptable within either wave B or wave 2 — an interpretation that allows the correction to extend without immediately invalidating the broader bullish structure.

LINK previously advanced from August lows near $8 to a peak of approximately $16. That rally established the high from which the current corrective movement has developed. Since October, successive lower highs have kept prices beneath descending resistance.

On the four-hour chart, two interpretations of the ongoing decline remain in play. LINK may be finishing wave 2 following an initial impulsive push, or the move could represent the B wave of a larger corrective formation. Under both scenarios, there is room for further weakness before the next phase of advancement. As such, the current downturn is not necessarily a stand-alone bearish development — but buyers would need more constructive price action to confirm either bullish reading.

Fibonacci Levels Identify Potential Support Areas

Fibonacci retracement measurements — horizontal reference levels derived from the ratios of the Fibonacci sequence and widely used to gauge where corrections may slow — offer several reference points for monitoring LINK's correction. The 50% retracement sits near $10.456, close to the current trading area. A sustained break beneath this zone could expose deeper support.

The next significant level is the 61.8% retracement at $9.498, which could draw attention if sellers maintain control. The chart also identifies extended downside references around $9.347 and $8.680. Further weakness could bring the $8.297 target into consideration, while the 78.6% retracement sits near $8.284. Taken together, these levels place the potential correction near August's trading range.

On the recovery side, descending trendline resistance remains a key obstacle, and the horizontal resistance area around $12 provides another reference. A sustained move above both areas would strengthen LINK's technical position.

Liquidations and Recent Price Action Show Market Pressure

According to market data from CoinMarketCap, LINK trades at $10.74, down 6.67% over the past 24 hours. The price previously hovered near $11.50 before a sharp intraday breakdown, and subsequent rebounds have struggled to hold above $10.90.

Trading volume reached approximately $409 million, a 9.35% increase. Rising turnover during a declining session points to elevated trading activity, while the price continues to fluctuate between roughly $10.55 and $10.90.

Perpetual futures liquidation data from Coinglass adds further context on leveraged positioning. Liquidations are the forced closure of leveraged positions when margin no longer meets exchange requirements, and clusters of them tend to appear around rapid price swings. June recorded long liquidation spikes exceeding $4 million, with one approaching $6 million. August later produced a short liquidation spike approaching $8.35 million. September and October also saw several long liquidation events above $4 million, movements that accompanied LINK's rally toward $15 and its subsequent retreat. Further selling could expose leveraged buyers to additional forced position closures.

The $10.50 area remains an immediate support reference for traders. A breakdown could bring the lower Fibonacci targets into focus. Conversely, reclaiming $12 would provide stronger evidence of improving market conditions.