LINK Falls to 6-Week Low as Potential Trend Change Emerges

Chainlink (LINK) has fallen nearly 28% from its August highs amid broad crypto market weakness, yet the $20 support level is holding, signaling a potential rebound.

The oracle network’s native token briefly dipped below $20 multiple times from Thursday to Friday, losing around 4% over 24 hours and hitting its lowest level since early August before bouncing back to $20.26.

Buying interest remains steady despite the downturn. Wealth management firm Caliber (CWD) added $4 million in LINK on Thursday, bringing its total holdings to $10 million. Meanwhile, the Chainlink Reserve, which uses protocol-generated revenue to buy tokens off the market, purchased nearly 47,903 LINK (~$1 million) on the same day. Since its August launch, the reserve has accumulated over 370,000 LINK ($7.5 million).

Technical Snapshot

• Price Action: LINK fell from $21.16 to $19.95 before recovering to $20.26, demonstrating significant intraday volatility.
• Support: Strong support at $19.95–$20.00 has held through multiple tests.
• Resistance: Immediate resistance lies at $20.30–$20.35, with a key cluster at $20.57 indicating a potential trend reversal if breached.
• Momentum: Technical indicators suggest a measured bullish move may be forming, pointing to the possibility of sustained upward momentum.

Market Context

• Macro: Broader cryptocurrency weakness reflects risk-off sentiment as Bitcoin slipped below $109,000, dragging major altcoins lower.
• Micro: Elevated trading volumes—over 5 million LINK during the decline—indicate institutional participation, while subsequent buying shows underlying demand.

While LINK remains in a short-term downtrend, defending the $20 level and ongoing institutional accumulation could set the stage for a trend shift if resistance at $20.57 is overcome.