Chainlink’s native token LINK turned to $18.40 during the Wednesday session, reversing losses from a sharp intraday sell-off that saw the price fall below the key $18 support level.
A sudden spike in volume of 4.59 million tokens – 178% above the 24-hour average – confirmed the breakdown as sellers overwhelmed short-term support levels. The token briefly consolidated between $17.80 and $18.30 before buyers stepped in late in the day, CoinDesk Research’s market insight tool suggested.
The rebound coincided with the broader crypto markets stabilizing after a somewhat hawkish speech by Federal Reserve Chairman Jerome Powell, which saw bitcoin briefly dipped below $110,000.
LINK rose about 4% over the past 24 hours.
What traders need to see
Despite downward movements, the underlying accumulation tendencies remain in play. Since early October, $188 million worth of LINK has been withdrawn from whale wallet exchanges, indicating strategic long-term positioning. Still, recent price swings show that near-term resistance near $18.60 continues to trigger profit-taking, clouding the short-term outlook.
Volume rose 26% above its seven-day average as traders reacted to increased volatility. The sharpest price decline occurred in the 60-minute window between $18.03 and $17.96, extending a bearish pattern that appears to have been exhausted by the session close. Extremely low volume in the last trading hour points to a possible slowdown in institutional selling.
For now, LINK’s ability to hold above $18 will be a key signal. A sustained move higher could push the token back towards the $19 level, but failure to hold the line could reveal downside towards the $17.60 support floor.
Key technical levels signal consolidation
- Support/Resistance: Critical support established at $17.60 with immediate resistance at $18.50-$18.80.
- Volume Analysis: 26% rise above weekly averages confirms breakdown legitimacy, although declining activity suggests pause in selling.
- Chart Patterns: Ranged consolidation between $17.80-$18.30 after initial break to $18.00.
- Targets and Risk/Reward: Recapturing the $18 level opens the way to the $18.50-$18.80 resistance zone, while failure to hold $17.60 could extend the decline towards $17.00.
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.
