Chainlink (LINK) deviated from its larger 13% weekly increase, dropping 1.89% over the previous day to trade at $24.32 on Monday. The market experienced profit-taking and technical selling pressure following the token’s seven-month high of $26.51, which prompted the retracement.
A combination of factors, starting with a market-wide correction, caused the decline. According to Bitcoinist, the top cryptocurrency, Bitcoin, fell 2.6% to $115,000, causing more than $500 million in derivatives market liquidations. As traders de-risk their positions, such abrupt movements in Bitcoin usually have a ripple effect on the industry, pulling altcoins lower. LINK was no different, demonstrating the continued close relationship between altcoin success and Bitcoin’s price movement.
There was also a strictly technical factor. Just around $26.50, its highest level since early 2024, Chainlink encountered strong resistance following two months of consistent increases. A natural pullback was triggered by the rejection at that level, which was in line with overbought signs on the relative strength index (RSI). LINK is currently retesting Fibonacci support close to $24.03, a level that traders keep a careful eye on for possible bounce dynamics. While staying above it would maintain the bullish structure, a breakdown from this zone would change the short-term momentum.
Afterwards a 60-day 84% surge, Chainlink retraces from $26.51 resistance, testing important $24.03 Fibonacci support.
Pressure from profit-taking and Chainlink’s future
Lastly, short-term holders’ profit-taking affected prices. According to data, LINK outperformed the majority of large-cap coins with an astonishing 84% rally over the last 60 days. Selling by traders looking to lock in profits is frequently prompted by such quick appreciation, especially when important resistance levels coincide with general market tension. Higher spot volumes indicate that there was selling pressure, indicating that swing and retail traders were active in the area near the local peak.
Also read: Chainlink pulls back despite strong weekly gains
Chainlink is still among the top performers in the current market cycle in spite of the decline. With integrations across institutional blockchain projects and decentralized finance protocols, its position as the top provider of decentralized oracles keeps growing. Despite the token’s short-term volatility, many contend that the long-term fundamentals are still solid.
The next several days will be crucial in establishing if the current pullback is just a halt in a continuous upswing or the start of a further retracement, since LINK is stabilizing close to support. As one of the most durable assets of the summer rise, the altcoin is still attracting investor attention.