LINK Slides 15% From August Peak Even as Chainlink Reserve Removes $5.5M From Circulation

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$110,906.38, 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.

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