Chainlink’s native token LINK recovered to $18.40 during the Wednesday session, reversing losses from a sharp intraday selloff that saw the price fall below the key $18 support level.
A sudden volume spike of 4.59 million tokens — 178% above the 24-hour average — confirmed the breakdown as sellers overpowered 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 Federal Reserve Chairman Jerome Powell’s slightly hawkish speech, which saw bitcoin briefly dipping below $110,000.
LINK was up roughly 4% over the past 24 hours.
What traders should watch
Despite the downside move, underlying accumulation trends remain in play. Since early October, approximately $188 million worth of LINK has been pulled off exchanges by whale wallets, indicating strategic long-term positioning. Still, recent price swings show that near-term resistance near $18.60 continues to trigger profit-taking, muddying the short-term outlook.
Volume rose 26% above the seven-day average as traders reacted to heightened 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 exhausted by the session close. Extremely light volume in the final 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 toward the $19 level, but failure to hold the line may expose downside toward 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% surge above weekly averages confirms breakdown legitimacy, though diminishing activity suggests pause in selling.
- Chart Patterns: Range-bound consolidation between $17.80-$18.30 following initial breakdown through $18.00.
- Targets & Risk/Reward: Reclaiming the $18 level opens way to $18.50-$18.80 resistance zone, while failure to hold $17.60 may extend declines toward $17.00.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.