- LINK has dropped 28% since August highs, hitting a 6-week low at $19.95.
- Institutional buyers and the Chainlink Reserve purchased millions in LINK, showing demand.
- $20 is key support, while resistance near $20.57 must break for recovery momentum.
Chainlink’s native token LINK has slipped nearly 28% since its August highs, dropping as low as $19.95 before bouncing back above $20. The move marks its weakest level in six weeks, mirroring broader crypto market weakness as Bitcoin tumbled below $109,000 and altcoins followed. Despite the pressure, strong buying activity around the $20 zone suggests a potential reversal could be forming.
Institutional and Reserve Buying Step In
Even as LINK sold off, institutional buyers moved in. Wealth management firm Caliber purchased another $4 million worth of LINK, boosting its total holdings to $10 million as part of its digital asset strategy. At the same time, the Chainlink Reserve—funded by protocol revenue—bought nearly 48,000 LINK on Thursday, adding to the 370,000 tokens (worth $7.5M) it has accumulated since August. These steady purchases are pulling supply off the open market, providing a potential buffer for prices.
Technical Levels to Watch
LINK’s intraday swing from $21.16 down to $19.95, before rebounding to $20.26, highlighted the $20 zone as critical support. CoinDesk Research flagged the $19.95–$20.00 range as a key floor, validated multiple times by high trading volume exceeding 5 million units during the selloff. Resistance, however, remains clustered around $20.57, with intermediate barriers at $20.30–$20.35. Breaking above those levels could signal the start of a more durable recovery.
Momentum Outlook
While the broader crypto market remains risk-off, technical indicators for LINK suggest a potential trend shift is brewing. Analysts point to bullish momentum signals, with measured moves showing capacity for sustained upward action if buyers continue defending the $20 line. For now, LINK remains stuck between firm support and stubborn resistance, leaving traders watching closely for confirmation of which way the next breakout will go.
