Bounces 4% as FOMC Volatility Drives Crypto Market
Chainlink’s native token LINK has seen a recovery to $18.40 during the Wednesday session, bouncing back from a sharp intraday selloff that briefly pushed the price below the key $18 support level. The sudden volume spike of 4.59 million tokens, which was 178% above the 24-hour average, confirmed the breakdown as sellers overwhelmed short-term support levels. However, the token managed to consolidate between $17.80 and $18.30 before buyers entered the market late in the day.
The rebound in LINK’s price coincided with the broader crypto markets stabilizing after Federal Reserve Chairman Jerome Powell’s slightly hawkish speech, which caused bitcoin to briefly dip below $110,000. LINK has shown a 4% increase over the past 24 hours.
Despite the recent downward movement, underlying accumulation trends suggest strategic long-term positioning, with approximately $188 million worth of LINK being withdrawn from exchanges by whale wallets since early October. However, the near-term resistance near $18.60 has continued to trigger profit-taking, creating uncertainty in the short-term outlook.
Traders should pay attention to the key technical levels signaling consolidation in LINK’s price. Critical support is established at $17.60, with immediate resistance at $18.50-$18.80. Volume analysis shows a 26% surge above weekly averages, confirming the breakdown’s legitimacy, although diminishing activity suggests a pause in selling. Chart patterns indicate range-bound consolidation between $17.80-$18.30 following the initial breakdown through $18.00. Targets and risk/reward ratios suggest that reclaiming the $18 level could push the token towards the $18.50-$18.80 resistance zone, while a failure to hold $17.60 may lead to further declines towards $17.00.
In conclusion, LINK’s ability to maintain support above $18 will be crucial in determining its next price movements. A sustained move higher could drive the token back towards $19, while a failure to hold the line may expose downside potential towards the $17.60 support level. Traders should closely monitor these key levels and technical indicators to make informed decisions in the volatile cryptocurrency market.
