Chainlink’s LINK token decreased by almost 5% in the last 24 hours, landing at $13.74 on Thursday, reversing earlier gains despite a significant announcement from Coinbase.
Earlier that day, Coinbase disclosed its choice of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to facilitate a new bridge for its $7 billion in wrapped assets, which includes cbETH, cbBTC, and cbDOGE. This move signifies a notable institutional endorsement of Chainlink’s cross-chain infrastructure and its role in the tokenization sector.
Additionally, the Nasdaq-listed digital asset treasury firm Caliber (CWD) announced the initiation of staking its LINK holdings to earn yield, beginning with a deployment of 75,000 tokens.
Despite these developments, broader market conditions affected sentiment negatively. Weak momentum in altcoins and renewed worries regarding the Federal Reserve’s interest rate outlook led LINK to drop from a high of $14.46 on Wednesday to a low of $13.43 on Thursday.
Nonetheless, indicators of potential stabilization started to appear late in the session. Trading volume surged by 20.4% above the 7-day average, with over 340,000 LINK exchanged between 18:42 and 18:45 UTC, according to CoinDesk data.
Accumulation patterns developed just above a key support level at $13.46, suggesting institutional positioning amidst greater market weakness, as highlighted by CoinDesk Research’s technical analysis tool.
Key Technical Levels Indicate Stabilization
Support/Resistance:
- Primary support: $13.46 (session low)
- Resistance: $14.88 (recent rejection zone)
- Psychological resistance: $14.00
Volume Analysis:
- Late-session spike of 340K tokens (2,000%+ above session average) confirmed renewed buying interest
- Overall daily volume increased by 20.4% compared to the weekly average
Chart Patterns:
- Consolidation observed between $13.43–$13.67 following an early selloff
- Final-hour breakout to $13.76 hints at a potential short-term bottoming
Targets & Risk/Reward:
- A break above $14.00 could target $14.38 and $14.88
- Failure to maintain $13.46 poses a risk of retracing to $13.20
Disclaimer: Portions of this article were created with the help of AI tools and reviewed by our editorial team to guarantee accuracy and adherence to our standards. For further details, please read CoinDesk’s full AI Policy.
