by Coinstrooper Crypto Articles
Quick Take
  • The move happened despite consistent buying activity.
  • On Thursday, wealth management firm Caliber (CWD) bought another $4 million in LINK tokens as part of its digital asset treasury strategy.
  • With the latest purchase, the firm brought total LINK holdings to $10 million, according to the press release.
  • The initiative has purchased over 370,000 tokens ($7.5 million) since its August launch.

What Happened

The Chainlink Reserve, a facility that purchases tokens using revenue from protocol integrations and services, taking supply off from the open market, also bought on Thursday nearly 47,903 LINK, worth just shy of $1 million at current prices. The initiative has purchased over 370,000 tokens ($7.5 million) since its August launch.

Market Context

Native token of oracle network Chainlink (LINK) has sunk to its weakest price since early August, giving up past weeks' gains amid broader crypto market weakness.

Despite the bearish trend, LINK is showing signs of snapping its downtrend with buyers' defending the $20 price level, CoinDesk Research's technical analysis model suggested. However, bulls have to push through the subsequent resistance cluster around $20.57 for a more persistent trend shift.

Price Movement: LINK retreated 5% from $21.16 to $19.95 before rebounding to $20.26, showcasing substantial intraday fluctuation with firm support at the $20.00 psychological barrier.

Macroeconomic Influences: Broad-based cryptocurrency volatility mirrored wider risk-aversion sentiment as bitcoin fell below $109,000 and major altcoins tumbled.

Microeconomic Components: Outstanding trading volume exceeding 5 million units during the selloff suggested institutional participation, while the following recovery on continuous buying interest indicates robust underlying appetite for LINK tokens.

Volume Assessment: Outstanding volume of 5,031,849 units during decline created firm support at $19.95 threshold.

Momentum Signals: Bullish measured move formation indicates sustained upward momentum capacity.

Why It Matters

LINK dipped briefly below $20 multiple times overnight from Thursday to Friday, declining around 4% over the past 24 hours and down nearly 28% from the August highs.

The move happened despite consistent buying activity. On Thursday, wealth management firm Caliber (CWD) bought another $4 million in LINK tokens as part of its digital asset treasury strategy. With the latest purchase, the firm brought total LINK holdings to $10 million, according to the press release.

Details

Support Zones: Essential support region identified between $19.95-$20.00 with multiple successful validations.

Resistance Objectives: Subsequent resistance cluster positioned near $20.57 with intermediate resistance at $20.30-$20.35.