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LINK, the native token of oracle service Chainlink has been under pressure recently as a number of positive headlines failed to break the decline.
The token slid another 2.8% over the past 24 hours to $22.4 while the broader market, as measured by the CoinDesk 20 Index was little changed, CoinDesk data shows. It's trading 15% lower since topping $27 on Aug. 22, despite being tapped by the U.S. government to publish economic data on the blockchain and Bitwise filing for a LINK exchange-traded fund (ETF).
The cool-off period follows a rally that saw the token booking a 37% gain in August, one of the strongest advances among major cryptos. It also coincides with bitcoin (BTC), ether (ETH) and the broader crypto market pulling back since mid-August.
The losses occurred even though the Chainlink Reserve, an automated mechanism that buys tokens on a weekly basis, essentially taking them out of circulation and reducing supply, purchased another 43,937 LINK on Thursday. Since its debut in early August, the mechanism has bought a total of 237,014 tokens, worth $5.5 million at current prices.
Technical analysis
- LINK encountered persistent bearish pressure, forming lower highs and lower lows as the broader crypto market is in a consolidation period, CoinDesk Research's technical analysis model shows.
- Key technical support levels established around $22.28-$22.32.
- Strong volume-backed resistance formed around the $23.10-$23.16 level.
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.
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