The native token of the oracle service Chainlink, LINK, has experienced recent declines amid a backdrop of positive developments that have not been enough to reverse this trend. Over the past 24 hours, LINK saw a drop of 2.8%, bringing its price down to $22.4. In contrast, the broader market, reflected in the CoinDesk 20 Index, remained relatively stable during this period. This recent price movement marks a 15% decrease since LINK peaked at $27 on August 22, despite significant news including a collaboration with the U.S. government for blockchain-based economic data publication and the filing of a LINK exchange-traded fund (ETF) by Bitwise.
The decline follows a notable rally in August, where LINK registered an impressive 37% gain, making it one of the strongest-performing cryptocurrencies during that month. However, since mid-August, major cryptocurrencies, including Bitcoin and Ether, have also faced contractions, contributing to the cooling-off period for LINK.
Notably, the Chainlink Reserve has continued its purchasing activities, buying another 43,937 LINK tokens on Thursday, which is part of an automated mechanism designed to take tokens out of circulation, thereby reducing supply. Since its inception in early August, this reserve has accumulated a total of 237,014 tokens, valued at approximately $5.5 million based on current market prices.
Technical analysis indicates that LINK is under consistent bearish pressure, characterized by forming lower highs and lower lows. This is occurring during a broader consolidation phase in the crypto market, as noted by CoinDesk Research’s technical analysis model. Key support levels have emerged around the $22.28 to $22.32 range, while significant volume-backed resistance is identified between $23.10 and $23.16.
Despite the ongoing struggles, the activity of the Chainlink Reserve reflects a strategic approach to managing supply, which could have implications for LINK’s future price trajectory as market conditions evolve.
