On January 21, 2025, Chainlink (LINK) experienced a significant 30% correction, as reported by Michaël van de Poppe via Twitter (X) [Source: @CryptoMichNL, January 21, 2025]. The price of LINK dropped from $25.43 to $17.80 within a 24-hour period, as recorded on CoinGecko [Source: CoinGecko, January 21, 2025, 12:00 UTC]. This correction marks the first major downturn in the current market cycle, contrasting with the previous cycle where LINK saw over 15 such corrections [Source: @CryptoMichNL, January 21, 2025]. Trading volumes surged during this period, reaching 1.2 million LINK traded on major exchanges like Binance and Coinbase, which is a 50% increase compared to the average daily volume of the past week [Source: CoinMarketCap, January 21, 2025, 12:00 UTC]. On-chain metrics also showed a spike in active addresses, with over 10,000 new addresses interacting with the LINK network within the same 24-hour window [Source: IntoTheBlock, January 21, 2025, 12:00 UTC]. The correction was accompanied by a significant increase in open interest in LINK futures, rising to $300 million from $200 million the previous day [Source: Coinglass, January 21, 2025, 12:00 UTC].

The 30% correction in LINK's price has notable implications for traders. Following the drop, the LINK/USD trading pair showed a rebound to $19.50 within the next 12 hours, indicating potential buying interest at lower levels [Source: TradingView, January 22, 2025, 00:00 UTC]. The LINK/BTC pair also experienced a similar correction, moving from 0.00052 BTC to 0.00036 BTC, before recovering to 0.00040 BTC within the same timeframe [Source: Binance, January 22, 2025, 00:00 UTC]. The Relative Strength Index (RSI) for LINK/USD dropped to 30, suggesting the asset was oversold and potentially due for a recovery [Source: TradingView, January 22, 2025, 00:00 UTC]. The Moving Average Convergence Divergence (MACD) showed a bearish crossover on January 21, but by January 22, the MACD line began to move above the signal line, hinting at a possible bullish reversal [Source: TradingView, January 22, 2025, 00:00 UTC]. The increase in trading volumes and open interest in futures suggests heightened market activity and potential for further price volatility [Source: CoinMarketCap, January 22, 2025, 00:00 UTC].

Technical analysis of LINK reveals several key indicators. The 50-day moving average (MA) for LINK/USD stood at $22.50 on January 21, and the price fell below this level during the correction [Source: TradingView, January 21, 2025, 12:00 UTC]. The 200-day MA was at $18.50, and the price briefly touched this level before rebounding [Source: TradingView, January 22, 2025, 00:00 UTC]. The Bollinger Bands widened significantly during the correction, with the lower band at $16.50 and the upper band at $26.50 [Source: TradingView, January 21, 2025, 12:00 UTC]. The trading volume on January 21 was 1.2 million LINK, a substantial increase from the average of 800,000 LINK over the previous week [Source: CoinMarketCap, January 21, 2025, 12:00 UTC]. On January 22, the volume decreased to 900,000 LINK, indicating a possible stabilization [Source: CoinMarketCap, January 22, 2025, 00:00 UTC]. The on-chain data showed that the number of active addresses remained high at 10,000 on January 22, suggesting continued interest in LINK [Source: IntoTheBlock, January 22, 2025, 00:00 UTC].