Native token of oracle network Chainlink (LINK) has sunk to its weakest price since early August, giving up past weeks’ gains amid broader crypto market weakness.
LINK dipped briefly below $20 multiple times overnight from Thursday to Friday, declining around 4% over the past 24 hours and down nearly 28% from the August highs.
The move happened despite consistent buying activity. On Thursday, wealth management firm Caliber (CWD) bought another $4 million in LINK tokens as part of its digital asset treasury strategy. With the latest purchase, the firm brought total LINK holdings to $10 million, according to the press release.
The Chainlink Reserve, a facility that purchases tokens using revenue from protocol integrations and services, taking supply off from the open market, also bought on Thursday nearly 47,903 LINK, worth just shy of $1 million at current prices. The initiative has purchased over 370,000 tokens ($7.5 million) since its August launch.
Despite the bearish trend, LINK is showing signs of snapping its downtrend with buyers’ defending the $20 price level, CoinDesk Research’s technical analysis model suggested. However, bulls have to push through the subsequent resistance cluster around $20.57 for a more persistent trend shift.
- Price Movement: LINK retreated 5% from $21.16 to $19.95 before rebounding to $20.26, showcasing substantial intraday fluctuation with firm support at the $20.00 psychological barrier.
- Macroeconomic Influences: Broad-based cryptocurrency volatility mirrored wider risk-aversion sentiment as bitcoin fell below $109,000 and major altcoins tumbled.
- Microeconomic Components: Outstanding trading volume exceeding 5 million units during the selloff suggested institutional participation, while the following recovery on continuous buying interest indicates robust underlying appetite for LINK tokens.
- Volume Assessment: Outstanding volume of 5,031,849 units during decline created firm support at $19.95 threshold.
- Support Zones: Essential support region identified between $19.95-$20.00 with multiple successful validations.
- Resistance Objectives: Subsequent resistance cluster positioned near $20.57 with intermediate resistance at $20.30-$20.35.
- Momentum Signals: Bullish measured move formation indicates sustained upward momentum capacity.