Chainlink’s native token link It recovered to $18.40 during Wednesday’s session, trimming losses from a sharp intraday selloff that dropped the price below the key support level at $18.
A sudden volume increase to 4.59 million tokens – 178% more than the 24-hour average – confirmed the breakdown as sellers overcame short-term support levels. CoinDesk Research’s Market Insights tool suggested the token briefly consolidated between $17.80 and $18.30 before buyers arrived at the end of the day.
Bitcoin saw a rebound as broader crypto markets stabilized following a slightly hawkish speech from Federal Reserve Chairman Jerome Powell. Briefly dropped below $110,000.
LINK was up nearly 4% in the last 24 hours.
What should traders look for
Despite the decline, underlying accumulation trends remain in play. Since the beginning of October, approximately $188 million worth of LINK has been withdrawn from exchanges by whale wallets, indicating a strategic long-term position. Nevertheless, recent price action suggests that near-term resistance near $18.60 is prompting profit-taking, worsening the short-term outlook.
Volume surged 26% above the seven-day average as traders reacted to increased volatility. The price dropped most sharply between $18.03 and $17.96 in a 60-minute period, giving rise to a bearish pattern that appears to have ended by session close. Extremely light volume in the last trading hours points to a possible slowdown in institutional selling.
For now, LINK’s ability to hold above $18 will be an important signal. A sustained move higher could push the token back to the $19 level, but failure to hold the line could have a negative impact towards the $17.60 support level.
Key technical levels indicate consolidation
- Support/Resistance: Important support established at $17.60 with immediate resistance at $18.50-$18.80.
- Volume Analysis: The 26% rise above the weekly average confirms the validity of the breakout, although decreasing activity suggests stagnation in selling.
- Chart Pattern: Range-bound consolidation between $17.80-$18.30 after initial breakdown of $18.00.
- Targets and Risk/Reward: Retesting the $18 level opens the way to the $18.50-$18.80 resistance zone, while failure to hold $17.60 could extend the decline to $17.00.
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial team to ensure accuracy and compliance Our standards. For more information see CoinDesk’s full AI policy.