Chainlink Token LINK Faces Selling Pressure, Falls 4%

The Chainlink token LINK witnessed significant selling pressure from institutional investors, falling by 4% to a session low of $21.30 over the past 24 hours. According to CoinDesk data, this drop marks the lowest price for LINK in over a week, echoing wider declines in the cryptocurrency market.

Background: Chainlink’s Decline and Market Volatility

The Chainlink token LINK experienced notable volatility, with its price range expanding to $1.05 during the session. This equated to a 5% swing between the low of $21.53 and a session high of $22.68. The CoinDesk 20 Index, a key benchmark for the wider digital asset market, also dropped by a similar margin, indicating broader sector weakness impacting LINK’s price action.

Technical analysis revealed resistance at the $22.68 level, where trading volume surged to almost 2 million LINK tokens. Heavy selling emerged at this resistance point, contributing to the session’s decline for Chainlink token LINK.

Chainlink Reserve Activities

While the market faced downward pressure, the Chainlink Reserve—a facility that acquires LINK tokens using proceeds from protocol integrations and network services—continued its regular acquisitions. On Thursday, the reserve bought 45,729 LINK, worth nearly $1 million, maintaining its weekly purchasing strategy. Currently, the reserve holds almost $10 million in LINK tokens. However, with LINK now trading below the reserve’s average acquisition price of $22.44, these holdings are recorded at a loss.

Market Reaction and Outlook

The recent institutional selling coincides with broader declines in the crypto sector. The fall in the Chainlink token LINK price places the reserve’s strategy under pressure, as market participants watch for signs of stabilization or further volatility. Resistance near $22.68 remains a focal point for technical traders, while ongoing reserve purchases could support prices in future sessions if selling pressure abates.

For wider context on trends in decentralized finance tokens and price movements, visit our cryptocurrency news section.

What’s Next for Chainlink Token LINK?

Market observers are closely monitoring whether continued protocol-driven purchases will help stabilize the Chainlink token LINK or if market momentum will drive further declines. For now, LINK remains below its recent cost basis as institutional and retail investors react to macro trends in digital assets. Ongoing volatility is expected as technical resistance and reserve buying shape price dynamics.

Sources: CryptoNews