Chainlink rebounded strongly by 24% after Monday's crash, but upside potential may be limited: Technicals and liquidity under pressure

Chainlink (LINK) experienced a sharp pullback along with the broader market this Monday, briefly dropping to $11.74. However, the price quickly rebounded, and as of press time, has risen about 24% from the low, trading at $14.61. Despite the strong short-term recovery, the technical structure and liquidity distribution indicate that LINK’s upside potential may be limited.

Recently, LINK surged 15% within six days, reaching a high of $13.57, fueled by ETF-related news and spot buying. However, the rapid reversal also exposed its still-weak long-term trend. Although the daily chart structure has turned bullish after breaking above $13.57, the overall trend has not fully reversed.

In terms of key price levels, the $15 to $16.6 zone forms a strong supply area and represents the level LINK must successfully convert into support to continue moving higher. The long-term support remains at $11.74 and $10.94 below, representing the safety range for the long-term trend.

On the technical indicators side, OBV is slowly trending higher, indicating that buying interest is increasing but still lacks strength, with no true trend volume breakout yet. The daily RSI is at 54, suggesting momentum is shifting bullish but remains relatively weak. The 1-hour RSI shows a short-term bearish divergence with price action, hinting at a possible minor pullback to the $14.2 support zone.

On-chain liquidation heatmaps show LINK recently swept through the key liquidity zone between $13.6 and $15. While there are short liquidation points above, their density is low, making it difficult to generate enough “attraction” to propel the price directly toward a $16.6 breakout.

An ideal bullish scenario would require a clear OBV volume breakout and a successful break above the $16–$16.6 range, turning it into support. At that point, LINK could start a new round of upward movement. However, given the current buying strength, the probability of an immediate breakout is low.

It is more likely that LINK will consolidate in the $14.2 to $15.4 range, waiting for the market to accumulate directional momentum again. As multiple liquidity zones have recently been swept, the market may enter a consolidation phase in the short term.

For traders, it is not advisable to blindly chase the rally in the short term. It is recommended to wait for the price to reconfirm support or for a more obvious volume breakout signal before making the next move.