Chainlink Breaks Below $14.50 Amid Broader Selloff; Reserve Adds 74K LINK Despite Losses
Chainlink's LINK token dropped nearly 5% on Thursday, falling below $14.50, marking its lowest level since late October. The decline was driven by technical selling, with a 118% surge in trading volume confirming resistance rejection at $15.00–$15.26. A liquidation cascade further pushed LINK to a new support level near $14.40. Despite the slide, onchain data indicates continued protocol accumulation, with the Chainlink Reserve purchasing over 74,000 LINK to total over 800,000 tokens, while still at an average acquisition cost of $20. Key technical levels highlighted include support at $14.40–$14.50 and resistance at $15.00 and $15.26. Breaking below support could lead to $14.20, while recovery depends on reclaiming $15.00.
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Market Performance of LINK Token
Chainlink’s LINK token extended its slide on Thursday, dropping nearly 5% over the past 24 hours and breaking below $14.50 as technical sellers overpowered buyers. LINK fell from $15.26 to $14.73 during the day, marking its weakest level since late October, according to CoinDesk data. The token also underperformed the CoinDesk 5 Index, which declined 3.7% over the same period.
Surge in Trading Volume and Resistance Levels
Trading volume for LINK surged to 3.32 million tokens, approximately 118% above the daily average, during the breakdown—confirming a decisive rejection of the $15.00–$15.26 resistance range, as noted by CoinDesk Research's technical analysis model. A rapid three-wave liquidation cascade between 17:05 and 17:41 UTC saw over 360,000 tokens trade in minutes, pushing LINK toward new support near $14.40 as bearish momentum accelerated.
On-chain Data Shows Accumulation
Despite the decline, onchain data indicates continued protocol accumulation. The Chainlink Reserve purchased an additional 74,049 LINK tokens on Thursday, lifting total holdings above 800,000 tokens, based on the reserve's dashboard. The average acquisition cost of these tokens sits near $20, leaving the reserve roughly 27% underwater.
Key Technical Levels and Trader Outlook
With LINK falling under $14.50, traders now face a tighter risk window. Losing the $14.40–$14.50 zone could potentially open the door to a decline toward $14.20, while reclaiming $15.00 remains critical for stabilizing short-term momentum.
Key Technical Levels to Watch
- Support: $14.40–$14.50 as immediate support.
- Resistance: $15.00 and $15.26 as key resistance levels.
Volume & Patterns
- Volume Analysis: Breakdown volume surged 118% above average, indicating institutional-driven sell pressure.
- Chart Patterns: A clear trendline break confirms a bearish reversal from recent highs.
Targets and Risk/Reward
Targets & Risk/Reward:
- Holding $14.40 helps contain downside risks to $14.20.
- Recovery requires a move above $15.26 to reset the short-term trend.
This technical outlook highlights the critical thresholds for traders attempting to navigate LINK's current bearish momentum.
Disclaimer
Disclaimer: Parts of this article were generated with the assistance of 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.