Chainlink ($LINK ) Analysis: Is the Correction Over?

On-Chain Signals Suggest Selling Pressure Easing

Chainlink's 17.2% drop since July 28 may be nearing exhaustion, according to key metrics:

Dormant Circulation Spike: August 1 saw old tokens move (typical capitulation signal)

90-Day Mean Coin Age Decline: Indicates distribution phase rather than accumulation

MVRV Ratio Near Zero: Few holders remain in profit, reducing sell motivation

Critical $15.50 Support Zone

Technical factors converge at this level:
✅ 50-Day Moving Average
✅ July Rally Launchpad (previous demand zone)
✅ Value Area Low per Volume Profile

A hold above $15.50 could confirm local bottom, while breakdown targets $13.50 next.

Bitcoin Correlation Remains Key

LINK's 30-day correlation with BTC: 0.82

Bitcoin stability above $113K needed for altcoin relief

Contrarian Indicators to Watch

Funding Rates: Slightly negative (-0.002%) – potential short squeeze fuel

Exchange Reserves: 18.6M LINK left CEXs in past week (bullish if trend continues)

Development Activity: 387 GitHub commits in July (2nd highest in crypto)

*"This looks like healthy profit-taking after a 200% YTD rally, not a trend reversal."*
— Santiment Lead Analyst

Price Scenarios:

Bullish: Hold $15.50 → Retest $18.50 → $20.00

Bearish: Lose $15.50 → $13.50 (200-day MA) → $11.00

Trading Strategy:

Wait for confirmation candle at $15.50

Watch BTC for broader market cues

Monitor Chainlink Staking v0.3 upgrades (Aug 8)