Chainlink’s native token LINK rebounded to $18.40 during Wednesday’s session, recovering losses from a sharp intraday selloff that forced the price below the crucial $18 support level.
A sudden surge in volume of 4.59 million tokens—178% above the 24-hour average—validated the breakdown as sellers overwhelmed short-term support levels. The token briefly ranged between $17.80 and $18.30 before buyers prevailed late in the day, according to CoinDesk Research’s market insight tool.
This rebound coincided with an overall stabilization in the crypto markets following a slightly hawkish speech by Federal Reserve Chairman Jerome Powell, which had caused bitcoin briefly dipped below $110,000.
LINK experienced an approximate 4% increase over the past 24 hours.
What traders should observe
Despite the downward move, underlying accumulation trends continue to support bullish positioning. Since early October, roughly $188 million worth of LINK has been withdrawn from exchanges by whale wallets, signaling strategic long-term positioning. Nevertheless, recent price fluctuations indicate that short-term resistance around $18.60 still provokes profit-taking, complicating the outlook.
Volume surged 26% above the seven-day average as traders responded to increased volatility. The most significant price drop occurred in the 60-minute timeframe between $18.03 and $17.96, extending a bearish trend that seems to have subsided by the end of the session. Very low volume during the final trading hour suggests a potential slowdown in institutional selling.
For the moment, LINK’s ability to maintain above $18 will be a critical indicator. A sustained upward move could drive the token back toward the $19 mark, whereas failing to hold this level could expose it to declines toward the $17.60 support line.
Key technical levels indicate consolidation
- Support/Resistance: Critical support established at $17.60 with immediate resistance between $18.50-$18.80.
- Volume Analysis: A 26% increase above weekly averages confirms the validity of the breakdown, although waning activity hints at a pause in selling.
- Chart Patterns: Range-bound consolidation between $17.80-$18.30 follows the initial breakdown through $18.00.
- Targets & Risk/Reward: Reclaiming the $18 level opens access to the $18.50-$18.80 resistance zone, while failing to maintain $17.60 may extend declines toward $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 alignment with our standards. For more details, see CoinDesk’s full AI Policy.
