LINK Hits 6-Week Low, Signaling Early Signs of Trend Shift

Chainlink (LINK) has dropped nearly 28% from its August highs amid broader crypto market weakness, yet the $20 support level shows signs of holding, hinting at a potential rebound.

The native token of the Chainlink oracle network fell briefly below $20 multiple times from Thursday to Friday, slipping about 4% over 24 hours and hitting its lowest point since early August before bouncing back to $20.26.

Despite the downturn, buying interest remains. Wealth management firm Caliber (CWD) purchased $4 million in LINK on Thursday, increasing its total holdings to $10 million. Meanwhile, the Chainlink Reserve, which uses protocol revenue to buy tokens off the market, acquired 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 Summary

• Price Movement: Intraday fluctuations saw LINK drop from $21.16 to $19.95 before rebounding to $20.26.
• 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 for confirming a trend reversal.
• Momentum: Technical indicators suggest a measured bullish move may be forming, offering potential for sustained upward momentum.

Market Drivers

• Macro: Broader crypto volatility reflects risk-off sentiment as Bitcoin slipped below $109,000, pulling altcoins lower.
• Micro: High trading volumes—over 5 million LINK during the decline—suggest institutional activity, while follow-up buying indicates strong underlying demand.

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

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