Chainlink (LINK) has recently shown strong growth; however, after reaching a high, the price is starting to correct. Let’s examine the current market state and potential scenarios for September.
Current State of the LINK Market
Chainlink started the summer at $13 and reached $27.87 by mid-August, but is now trading around $22.65. This significant drop is expected after such a rapid price increase. The main question is whether this is a healthy correction or a precursor to a deeper decline.
Market Indicators
Trading volume is around 148K, which is lower than during the rally days. Open interest has decreased to $7.57M, indicating reduced leverage among traders. Net longs have dropped to -3.33M, suggesting bulls are taking profits. Meanwhile, shorts have risen to 7.31M, but this hasn't led to a sharp price decline.
LINK Price Forecast for September
Heading into September, the key support area will be $22–$23. If LINK can hold above this level, it may lead to a price attempt to rise towards $25–$27. Otherwise, the next level to watch is around $20, where a bigger correction could occur, yet the overall uptrend would remain intact.
Chainlink is currently in a cooling-off phase following a significant rally. Monitoring the support range at $22–$23 will be crucial, as future price movements depend on how the currency behaves at this critical level.
