Chainlink (LINK) has dropped nearly 28% from its August highs amid broad crypto market weakness, but buyers are defending the $20 level, signaling potential stabilization.
The oracle network’s native token briefly dipped below $20 multiple times from Thursday to Friday, falling about 4% over 24 hours and hitting its lowest price since early August before rebounding to $20.26.
Despite the pullback, buying interest persists. Wealth management firm Caliber (CWD) purchased $4 million in LINK on Thursday, bringing total holdings to $10 million. Additionally, the Chainlink Reserve, which acquires tokens using protocol revenue, bought nearly 47,903 LINK (~$1 million) on the same day. Since its August launch, the reserve has accumulated more than 370,000 LINK ($7.5 million).
Technical Snapshot
- Price Action: LINK fell from $21.16 to $19.95 before rebounding, reflecting intraday volatility.
- Support: Strong support exists at $19.95–$20.00.
- Resistance: Key resistance clusters are at $20.30–$20.35, with critical resistance at $20.57 for confirming a trend reversal.
- Momentum: Technical indicators suggest a potential bullish move, pointing to possible sustained upward momentum if resistance is breached.
Market Context
- Macro: Crypto weakness mirrors risk-off sentiment as Bitcoin slipped below $109,000, pressuring major altcoins.
- Micro: Elevated trading volumes—over 5 million LINK during the decline—indicate institutional participation, while follow-up buying shows solid demand.
While LINK remains in a short-term downtrend, defending $20 and ongoing institutional accumulation could pave the way for a trend shift if resistance at $20.57 is overcome.
