Chainlink’s native token LINK has cooled off after a strong August rally, sliding 2.8% over 24 hours to $22.40 and trading about 15% below its Aug. 22 peak near $27. The pullback comes even as the project picked up positive headlines — Chainlink was tapped by the U.S. Department of Commerce to publish economic data on-chain and Bitwise filed for a spot LINK ETF — and as the Chainlink Reserve continued buying.
The Reserve, an automated weekly buyer designed to remove LINK from circulation, purchased another 43,937 LINK recently, bringing its total purchases since early August to 237,014 tokens, worth roughly $5.5 million at current prices. While these buys reduce available supply, they are modest relative to the broader market and haven’t fully offset profit-taking and market consolidation.
Broader market weakness — including pullbacks in bitcoin and ether — sapped momentum after LINK’s 37% August run. CoinDesk Research’s technical model shows LINK making lower highs and lower lows within a consolidation pattern, with key support around $22.28–$22.32 and volume-backed resistance near $23.10–$23.16.
What to watch next
- If LINK holds the $22.28 area and reclaims $23.10 on rising volume, ETF speculation and on-chain adoption narratives could fuel another leg up.
- A decisive break below support would likely invite further retracement as short-term traders lock in profits.
Risk considerations: LINK remains volatile and closely tied to broader crypto moves and headlines. Supply-reduction tools such as the Reserve provide some support but don’t guarantee price stability. This is not financial advice — manage position sizes and use risk controls.
Investors should monitor ETF filings and the Department of Commerce pilot for updates.
Source: CoinDesk. Read the original coverage for full details.