Chainlink Price Nears Key Support Level
Chainlink (LINK) price is trading below $22 on Thursday. It is close to an important support zone. A strong close below this level could lead to a deeper price drop. Selling pressure has increased due to holders taking profits.
Profit-Taking and Investor Activity
Data from Santiment shows Chainlink holders are realizing profits this week. The Net Profit/Loss (NPL) metric spiked on Monday and Tuesday. This means many holders sold their LINK at a profit, adding to short-term selling pressure.
Despite this, CryptoQuant reports the largest outflow of LINK from exchanges on Monday. Investors withdrew 15,133 LINK tokens, the highest since tracking began. This suggests some buyers are accumulating LINK by moving it off exchanges, a generally bullish sign.
Chainlink’s growing partnerships also support optimism. On Wednesday, Solstice Finance announced a collaboration with Chainlink and others. This aims to improve Solstice’s infrastructure and cross-chain features.
Additionally, Crypto Finance, part of Deutsche Börse Group, launched Chainlink Proof of Reserve. CEO Stijn Vander Straeten said this technology provides secure, verifiable reserve information for investors.
Chainlink Price Outlook
LINK price dropped over 5% on Monday and closed below $22.05 support. It faced resistance at this level on Tuesday and declined further. On Thursday, LINK trades near an ascending trendline from early July lows.
If LINK breaks below this trendline, the price may fall toward $19.40, the 50% retracement level. Buyers might find opportunities between $19.40 and $18.81, near the 200-day EMA.
The Relative Strength Index (RSI) is at 38, close to oversold. The MACD shows a bearish crossover, indicating downward momentum.
If LINK holds support near the 100-day EMA at $20.51, it could rebound toward resistance at $22.05.
