Chainlink’s native cryptocurrency, LINK, demonstrated resilience on Wednesday by recovering approximately 4% following a volatile trading session influenced by Federal Reserve Chair Jerome Powell’s recent remarks. The token rebounded to around $18.40 after initially dropping below the critical $18 support level earlier in the day.
The early selloff was marked by a sharp volume surge, with around 4.59 million LINK tokens changing hands—an increase of 178% compared to the 24-hour average. This heightened trading volume underscored strong selling pressure that briefly pushed the price down, breaking short-term support. LINK then entered a consolidation phase, fluctuating between $17.80 and $18.30 before buyers regained control late in the session.
This market movement paralleled broader cryptocurrency trends, as the entire sector faced increased volatility following Chair Powell’s somewhat hawkish statements. Bitcoin (BTC) also experienced a dip, slipping briefly below the $110,000 threshold, reflecting cautious sentiment among investors. Despite these fluctuations, LINK managed a recovery, closing the day roughly 4% higher.
Long-term holding patterns for LINK appear to remain intact. Since the beginning of October, whale wallets have withdrawn approximately $188 million worth of tokens from exchanges, signaling deliberate accumulation and sustained confidence. However, short-term price action reveals ongoing challenges in overcoming resistance near the $18.60 level, which continues to prompt some profit-taking among traders.
Trading volume for LINK increased by 26% beyond the seven-day average amid the heightened market turbulence. The most notable price decline occurred within a brief 60-minute window when the token slipped from $18.03 to $17.96, extending a bearish tendency that measured indicators suggest was nearing exhaustion by the end of the session. Additionally, very light volume in the final trading hour implies a potential reduction in institutional selling pressure during that period.
Key technical levels to monitor include the established support at $17.60 and resistance closely situated between $18.50 and $18.80. Maintaining a price above $18 is considered vital for LINK to potentially advance toward the $19 mark. Conversely, failure to hold the $18 floor might expose the token to further downward movement, possibly testing the $17.60 support and, in an extended bearish scenario, sliding toward $17.00.
Currently, LINK price action appears to be range-bound, oscillating within the $17.80 to $18.30 band following its initial breach of the $18 mark earlier during the session. Market participants are advised to watch for confirmation of a sustained breakout above resistance or a decisive move below support to gauge the token’s near-term trajectory more clearly.
Disclaimer: Portions of this article were created with the assistance of AI tools and have been reviewed by our editorial team for accuracy and compliance with our publishing standards.
