Chainlink (LINK) has retreated nearly 28% from its August highs amid broader crypto market weakness, but buyers are defending the $20 support level, signaling potential stabilization.
The oracle network’s native token briefly fell below $20 multiple times from Thursday to Friday, declining roughly 4% over 24 hours and hitting its lowest point since early August before bouncing back to $20.26.
Buying activity remains steady. Wealth management firm Caliber (CWD) added $4 million in LINK on Thursday, raising its total holdings to $10 million. Meanwhile, the Chainlink Reserve, which acquires tokens using protocol revenue, purchased nearly 47,903 LINK (~$1 million) on the same day. Since launching in August, the reserve has accumulated more than 370,000 LINK ($7.5 million).
Technical Overview
- Price Action: LINK dropped from $21.16 to $19.95 before rebounding, showing significant intraday volatility.
- Support: $19.95–$20.00 remains a firm support zone.
- Resistance: Immediate resistance is at $20.30–$20.35, with a key cluster at $20.57 for confirming a trend reversal.
- Momentum: Technical indicators point to a measured bullish move forming, suggesting potential for sustained upward momentum if resistance is breached.
Market Drivers
- Macro: Broad crypto weakness mirrors risk-off sentiment as Bitcoin fell below $109,000, dragging major altcoins lower.
- Micro: Heavy trading volumes—over 5 million LINK during the decline—indicate institutional participation, while follow-up buying points to solid underlying demand.
Although LINK remains in a short-term downtrend, defending $20 and continued institutional accumulation could pave the way for a potential trend shift if the $20.57 resistance level is cleared.
