Chainlink Bounces 5%, But Breakout Falters at $16.50 Resistance
Chainlink's native token LINK LINK$16.06 rebounded on Monday, advancing 5.2% over the 24-hour period to a session high of $16.66 before profit-taking kicked in.
The price jump followed a steady upward trend with higher lows and strong participation from traders, but the failure to hold above $16.50 signaled near-term exhaustion, CoinDesk Research's technical analysis model said.
The most significant move came at midnight UTC, when 1.82 million tokens changed hands — nearly 70% above the daily average — confirming a breakout through the critical $16.00 level and validating the rally’s momentum.
However, the uptrend stalled as traders began taking profits near session highs. Volume exceeded 60,000 tokens in a short sell-off after 14:00 UTC, knocking LINK back to around $16, capping bullish continuation attempts for now, the model said.
The action occurred just ahead of Chainlink’s Rewards Season 1, set to launch November 11. The program allows eligible LINK stakers to earn token rewards from nine partner projects by allocating non-transferable points called Cubes.
Key Technical Levels Signal Consolidation for LINK
- Support/Resistance: Primary support is established at $16.47 following the breakdown, with $16.50 now serving as immediate resistance after the failed breakout attempt
- Volume Analysis: Midnight surge to 1.82M shares (69% above average) confirms breakout validity, though subsequent selling pressure exceeds 60K volume during the reversal
- Chart Patterns: 24-hour ascending trend with higher lows intact despite 60-minute consolidation failure; $16.51-$16.66 range defines near-term boundaries
- Targets & Risk/Reward: Bulls target return above $16.50 for continuation toward $16.66, while breakdown below $16.47 could test $16.30 support with $16.00 as ultimate downside target
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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