Chainlink Price Faces Critical Test Amid Uncertainty
Chainlink's token price is facing a crucial test near $10.87 as it holds steady at around $10.88 on Wednesday, showing little daily movement. The token recently pulled back after its September spike above $13 and is now facing technical importance in the current zone of $10.85-$10.90. This region was previously resistance for LINK but turned into a potential support zone during the August rally when it broke above that area.
LINK needs buyers to defend this level again, as a sustained hold above $10.85 could keep higher targets within reach, with traders watching the $11.50-$12 range next and potentially reaching September's high near $13. However, a daily close below $10.85 could weaken the bullish structure and expose support around the $10 level, where a rising trendline also sits on the daily chart.
The decline in LINK's price has cooled momentum significantly since the August surge, with the daily RSI now sitting at around 46 after exceeding 80 during the rally. This shows that previous overbought conditions have faded, but buyers have yet to regain clear momentum, leaving the technical picture balanced near the current price.
The Senate's rejection of the CLARITY Act adds uncertainty across crypto markets and carries particular relevance for Chainlink's broader growth story as it targets institutional blockchain infrastructure and tokenized real-world assets. Chainlink continues developing institutional partnerships despite the political setback, with Wyoming adopting Chainlink Proof of Reserve for its state-issued stable token FRNT earlier this month.