LINK retreats from resistance as traders eye key support near $20 amid rising market volatility.
Chainlink’s (LINK) token slipped around 4% in the last 24 hours, pulling back to nearly $22.44 as traders booked profits following a strong multi-week rally. The decline comes amid heightened trading volume and visible resistance near the $24 zone, suggesting the asset is encountering increased selling pressure.
According to the daily chart, LINK recently rejected the upper resistance band between $26 and $30, highlighted in red. The token has since retraced toward its $20–$21 support region, a zone that previously acted as a breakout level in early September.
Technical analysts note that momentum remains constructive above $20, but a failure to defend this level could open the door to a deeper correction toward the $17 support area, represented by the orange zone on the chart.
“Chainlink’s rally from July lows has been impressive, but short-term exhaustion is becoming clear,” said one of BITX analyst. “If the broader market stays risk-off, we could see LINK retesting the mid-$18 range before stabilizing.”
Despite the current pullback, on-chain data shows steady network activity and consistent whale accumulation, suggesting that long-term sentiment around the project remains positive.
Another market observer commented that LINK’s long-term structure is still bullish, as the asset has already broken out of a descending channel formed earlier this year.
“The trend reversal is intact, but consolidation is necessary for the next leg higher,” According to BITX analysts. “A close above $25 would confirm renewed bullish strength and could propel LINK toward the $30–$32 range.”
Meanwhile, broader crypto market sentiment remains fragile, with Bitcoin consolidating below $122,000 and Ethereum holding near $4,350. The lack of strong upside momentum in majors is contributing to altcoin volatility, including LINK’s recent swings.
For now, traders are closely watching whether Chainlink can maintain support above $20, as it will likely determine the next major directional move heading into the final quarter of the year.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.