Drops 8% Despite 64K Token Buyback

Chainlink (LINK) Token Plunges Below Key Support Levels

The native token of the oracle network Chainlink, LINK, experienced a significant decline on Thursday as institutional selling pressure dominated the market. The token dropped 8% from $18.39 to $16.92 over the past 24 hours, breaching critical support levels in the process.

According to CoinDesk research’s market insight tool, LINK fell below a descending trendline that had been containing its recent price action. Trading volume spiked to 3.94 million units during the initial breakdown, almost double the average volume observed in recent sessions.

Recent hourly data indicates that LINK is now stuck below the $17 mark, struggling to break out of a narrow consolidation range. Despite oversold technical conditions, multiple attempts to reclaim the $17 level have failed, with trading activity dropping 58% below session peaks. This lack of institutional buying interest suggests that further downside pressure could be on the horizon.

On the positive side, real-world asset protocol Ondo Finance announced that Chainlink would be providing price feeds for over 100 tokenized stocks and ETFs. This partnership will ensure accurate valuations across multiple blockchains by providing streaming data on corporate actions such as dividend payments. Additionally, the collaboration will involve Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and partnerships through the Ondo Global Market Alliance.

In other news, the Chainlink Reserve, which uses protocol revenue to buy tokens on the open market, added 64,445 LINK to its stash on Thursday. This marks the largest nominal acquisition since the reserve’s inception in early August, bringing its total LINK holdings to $11 million.

For traders monitoring LINK, here are some key points to watch:

– Support/Resistance: Immediate resistance at the $17 psychological level, with stronger resistance at $18.20 from a failed recovery attempt.
– Volume Analysis: The exceptional 3.94 million unit volume during the breakdown confirms institutional selling pressure.
– Chart Patterns: The break of the descending trendline triggered accelerated selling through multiple support zones.
– Targets & Risk: The next support target is the $16.50 zone, with a potential deeper correction towards $16.00 if consolidation fails.

Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to CoinDesk’s standards. For more information, see CoinDesk’s full AI Policy.