Chainlink (LINK) has breached its crucial support level at $14.50 this Thursday, November 13. The drop, approximately 5%, occurred in line with a broader market pullback and was exacerbated by intense selling pressure.
Technical data shows the breakdown was accompanied by a massive 118% spike in daily trading volume, signaling strong bearish conviction during the rejection at the $15.00 zone.
The fall was accelerated by a liquidation cascade. Between 17:05 and 17:41 UTC, three distinct waves liquidated over 360,000 LINK tokens in perpetual contracts. This rapid washout of long positions sharply pushed the price toward the next support at $14.40.
On-Chain and Technical Indicators Signal Weakness
The short-term selling pressure is visible in both technical indicators and on-chain data.
- Technical Indicators: The RSI (Relative Strength Index) fell to 28.97, entering oversold territory. The CMF (Chaikin Money Flow) registered -0.19, indicating a net outflow of capital.
- On-Chain Data: According to Santiment, LINK flows to exchanges increased significantly, rising from 819,559 tokens on November 2 to 3.41 million. Historically, a spike in exchange deposits suggests a higher intent to sell from holders.
“Chainlink Reserve” Accumulates the Dip
In a stark contrast to the bearish retail market sentiment, the Chainlink Reserve (an institutional treasury) used the dip to accumulate.
The entity purchased an additional 74,049 LINK, bringing its total holdings above 800,000 tokens. This accumulation comes despite the Reserve’s position facing significant losses; its average purchase cost is around $20, placing it at an approximate 27% unrealized loss.
For traders, the immediate level to watch is the $14.40 range. A sustained break below this could open the path to lower targets at $14.20 or even $10.94. To stabilize, LINK needs to reclaim the $15.00 psychological level.
