Summary:
Chainlink’s native token LINK experienced a 4% rebound to $18.40 during Wednesday’s trading session, recovering from a sharp intraday selloff that pushed prices below the critical $18 support level. The recovery coincided with broader crypto market stabilization following Federal Reserve Chairman Jerome Powell’s hawkish speech. LINK’s resurgence was supported by a spike in trading volume and strategic accumulation by whale wallets, signaling long-term confidence despite short-term volatility. This movement highlights the interplay between macroeconomic factors and crypto market dynamics.
What This Means for You:
- Monitor Key Levels: Watch for LINK’s ability to hold above $18, as a sustained move higher could target $19, while a drop below $17.60 may extend declines.
- Long-Term Positioning: The withdrawal of $188 million worth of LINK from exchanges suggests growing confidence among institutional investors, making accumulation at lower levels a potential strategy.
- Volume Insights: Trading volume surged 26% above the weekly average, signaling heightened market activity. Diminishing volume near session close may indicate a pause in institutional selling.
- Future Outlook: Continued volatility is likely due to macroeconomic uncertainties, making risk management crucial for traders.
Bounces 4% as FOMC Volatility Drives Crypto Market:
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 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.
Extra Information:
- Crypto Markets Overview: Provides insights into broader market trends affecting LINK and other cryptocurrencies.
- Federal Reserve Updates: Stay informed on macroeconomic developments influencing crypto volatility.
- Chainlink Price Analysis: Track real-time price movements and technical indicators for LINK.
People Also Ask About:
- What caused LINK’s recent price drop? The drop was driven by a combination of profit-taking and broader market reactions to Federal Reserve policy updates.
- Is LINK a good long-term investment? Whale wallets withdrawing $188 million from exchanges suggest strong long-term confidence in LINK.
- How does FOMC impact crypto prices? Federal Reserve announcements often lead to increased volatility in crypto markets due to their influence on macroeconomic sentiment.
- What are the key support levels for LINK? Critical support is at $17.60, with resistance near $18.50-$18.80.
- Should I buy LINK now? Accumulation trends suggest potential long-term value, but short-term volatility warrants cautious trading.
Expert Opinion:
Crypto markets remain highly sensitive to macroeconomic forces, and LINK’s recent recovery underscores the importance of monitoring both technical levels and broader economic indicators. Traders should focus on key support and resistance zones while staying alert to shifts in institutional accumulation patterns, which often signal longer-term trends.
Key Terms:
- Chainlink LINK price analysis
- FOMC impact on crypto markets
- Chainlink whale accumulation trends
- Cryptocurrency support and resistance levels
- Federal Reserve and crypto volatility
- LINK technical analysis 2023
- Crypto market trading strategies
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