Chainlink LINK Hits Six-Week Low After 28% Drop, Eyes Rebound at $20
Chainlink LINK fell nearly 28% from its August highs, sliding to a six-week low around $19.95 amid broader crypto market weakness. Institutional investors stepped in during the sell-off. Wealth manager Caliber added $4 million of LINK to its digital asset treasury, bringing its total to $10 million. The Chainlink Reserve bought 47,903 LINK (about $1 million), part of 370,000 tokens acquired since August. LINK rebounded above the $20 support level on strong volume exceeding 5 million units. Technical models point to crucial resistance at $20.30–20.35 and a more decisive barrier at $20.57. Bitcoin’s dip below $109,000 mirrored the risk-off sentiment. While short-term volatility may persist, firm support at $20.00 and ongoing institutional buying suggest Chainlink LINK could stabilise ahead of any sustained upswing.
Neutral
Although LINK plunged almost 28% to hit a six-week low, strong institutional purchases and repeated defense of the $20 support level signal potential stability. Historically, Chainlink has consolidated around key psychological thresholds after major declines before resuming uptrends. Current trading volume surge and Caliber’s and the Chainlink Reserve’s buy orders mirror past events where accumulation at support preceded sideways trading. Resistance at $20.30–20.35 and then $20.57 must be cleared for a sustained rally. Given mixed signals—heavy recent losses offset by robust buy pressure—the impact is neutral: volatility may persist in the short term, while long-term upside remains possible if LINK holds its base and breaks resistance.