Chainlink (LINK) Holds Above $23 Despite 15% Decline From August Peaks Following US Government Partnership
Rebeca Moen Sep 10, 2025 14:32
LINK trades at $23.73 (+1.50%) as technical indicators show mixed signals despite major US Department of Commerce partnership failing to sustain bullish momentum.
Quick Take
• LINK currently trading at $23.73 (+1.50% in 24h) • Chainlink's RSI at 54.17 suggests neutral momentum with room for upward movement • US government partnership announcement failed to prevent 15% decline from August highs
What's Driving Chainlink Price Today?
The LINK price has shown resilience today with a 1.50% gain, but this modest recovery comes after a challenging week that saw Chainlink decline 15% from its August peak despite significant positive developments. The primary catalyst was the announcement of a partnership with the U.S. Department of Commerce to bring macroeconomic data on-chain, initially pushing LINK to $24 on September 3rd.
However, the euphoria was short-lived. Despite this landmark government adoption and Bitwise's filing for a spot Chainlink ETF, selling pressure emerged as the broader crypto market showed weakness. The disconnect between fundamental developments and price action suggests that traders may be taking profits or that broader market sentiment is weighing on individual token performance.
Adding to the mixed signals, Chainlink Reserve recently removed $5.5 million worth of LINK from circulation, typically a bullish supply-side development. Yet the LINK price continued to face headwinds, highlighting the current market's focus on short-term technical factors over fundamental improvements.
LINK Technical Analysis: Mixed Signals Emerge
Chainlink technical analysis reveals a complex picture with both bullish and bearish elements competing for control. The LINK RSI currently sits at 54.17, placing it in neutral territory with slight bullish bias – this suggests there's room for upward movement without entering overbought conditions.
The moving average structure tells a compelling story for longer-term bulls. Chainlink's price sits exactly on its 20-day SMA at $23.73, while trading well above both the 50-day SMA ($21.59) and 200-day SMA ($16.23). This alignment typically indicates an underlying bullish trend, even amid short-term volatility.
However, the MACD presents a more cautious view. With a negative histogram reading of -0.2130, Chainlink is showing bearish momentum in the near term. The MACD line (0.2080) remains above the signal line (0.4209), but the narrowing gap suggests weakening bullish momentum.
Within the Bollinger Bands framework, LINK trades near the middle band with a %B position of 0.5008, indicating balanced price action without extreme momentum in either direction. The daily ATR of $1.45 shows moderate volatility, giving traders clear risk parameters for position sizing.
Chainlink Price Levels: Key Support and Resistance
Based on Binance spot market data, LINK faces immediate resistance at $27.87, which also serves as the strong resistance level. This price zone represents a critical test for bulls, as breaking above could signal a resumption of the broader uptrend toward Chainlink's 52-week high of $26.79.
For Chainlink support levels, the immediate support sits at $21.87, closely aligned with the lower Bollinger Band at $21.12. This creates a confluence zone where buyers are likely to emerge. A break below this level could expose the strong support at $15.43, though such a move would require a significant shift in market structure.
The LINK/USDT pair is currently testing the pivot point at $23.50, making this level crucial for intraday direction. Traders should watch for a decisive break above or below this level to guide short-term positioning decisions.
Should You Buy LINK Now? Risk-Reward Analysis
For swing traders, the current LINK price offers an interesting setup with the RSI in neutral territory and price holding above key moving averages. Entry near current levels with a stop-loss below $21.87 provides a reasonable risk-reward ratio, targeting the $27.87 resistance level.
Day traders should focus on the narrow trading range between $22.83 and $23.93 established in the last 24 hours. Volume of $86.24 million on Binance spot suggests healthy interest, making range-bound strategies viable until a clear breakout occurs.
Long-term investors may view the recent weakness as an opportunity, particularly given the fundamental strength from government adoption. However, waiting for the LINK price to reclaim and hold above $24 could provide better confirmation of renewed bullish momentum.
Risk management remains crucial given the conflicting signals. The gap between positive fundamentals and recent price action suggests either an overreaction to short-term selling pressure or underlying market weakness that hasn't fully manifested.
Conclusion
Chainlink stands at a crossroads where strong fundamentals meet technical uncertainty. While the US government partnership represents a significant validation of Chainlink's technology, the LINK price action suggests traders remain cautious about near-term momentum. The neutral RSI and balanced Bollinger Band position provide flexibility for moves in either direction, making the next 24-48 hours critical for establishing short-term trend direction. Traders should monitor the $23.50 pivot level closely, as sustained movement above or below this level could signal the next directional move for LINK.
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