Chainlink (LINK) Faces Institutional Selling Pressure, Drops Below Key Support Levels

Chainlink’s native token, LINK, experienced heavy institutional selling over the past 24 hours, sliding to its lowest price in more than a week. The cryptocurrency fell by 4% to a session low of $21.30, marking an 8% reversal from Monday’s local high, according to CoinDesk data. The downturn aligned with a broader crypto market correction, as the CoinDesk 20 Index also dipped around 4%, reflecting weakening investor sentiment across major digital assets.

Despite the sell-off, the Chainlink Reserve continued its steady accumulation strategy, purchasing 45,729 LINK tokens—valued at nearly $1 million—on Thursday. The reserve, which reinvests income from protocol integrations and services, now holds approximately $10 million in LINK. However, with the token’s price falling below its average cost basis of $22.44, the reserve currently finds itself in a slight unrealized loss position.

From a technical standpoint, bearish momentum has taken hold, as highlighted by CoinDesk Research’s market model. LINK’s trading range expanded to $1.05, signaling 5% intraday volatility between a low of $21.53 and a high of $22.68. Analysts identified resistance levels forming at $22.68—where the token reversed on heavy volume of nearly two million units—and a secondary barrier around $21.92. These levels could pose challenges for short-term bullish recovery unless market confidence strengthens.

While Chainlink continues to attract long-term interest due to its decentralized oracle network’s growing utility, short-term traders remain cautious amid heightened volatility and broader market weakness. LINK’s price movement in the coming days may depend on renewed market momentum or further institutional positioning.