Chainlink has had a strong summer run, but the rally is starting to cool off. After climbing all the way to $27.87, LINK price has pulled back and is now trading around $22.65. That’s a decent drop, but not unexpected after such a sharp move higher. 

The big question now is whether this is just a healthy reset or the start of a deeper correction as we head into September.

The chart tells a pretty clear story. LINK price broke out in July when it was trading around $13 and didn’t slow down until it almost doubled in price by mid-August. Along the way, it formed higher highs and higher lows, exactly what you want to see in a strong uptrend.

Now, after topping out just under $28,Chainlink price has slipped back into the $22–$23 zone. This is an interesting spot because it was a resistance area earlier in August, and now it’s being tested as support. If buyers defend this level, it could set the stage for another leg up later in September.

Trading activity is still decent, with volume holding up around 148K, though it’s definitely lighter than the breakout days. 

Open interest has eased back to about $7.57M, which shows traders aren’t as leveraged as before.

Positioning is leaning cautious. Net longs have dropped to around -3.33M, suggesting bulls are taking some profits and stepping back for now. 

Shorts are sitting near 7.31M, showing bears are still pressing, but they haven’t taken over either. That balance often leads to chop in the short term, but if sellers can’t force a breakdown, it sometimes sets the stage for another bounce.

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Heading into September, all eyes are on that $22–$23 support range. If Chainlink price can hold above it, we could see price stabilize and then make another attempt at $25–$27, with the potential to retest the highs near $28.

If support doesn’t hold, the next area to watch is around $20. A move down there would be a bigger correction, but it would still keep the overall uptrend intact as long as buyers step back in.

For now, LINK price looks like it’s in cooldown mode after a big rally. Short-term traders may see more sideways action, but as long as the price doesn’t lose the low $20s, the bigger picture still looks bullish heading into September.

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The post Here’s Where Chainlink (LINK) Price Is Headed in September appeared first on CaptainAltcoin.

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