Chainlink (LINK) experienced one of its most volatile trading sessions of the year, plunging from around $21 to nearly $12 in a matter of minutes before sharply rebounding to around $16.50.
According to CoinMarketCap, LINK’s market cap fell 21.8% to $11.55 billion, while trading volume skyrocketed 164% to $2.29 billion as traders rushed to react. The extreme price swing was largely driven by cascading liquidations, overleveraged long positions were wiped out as automated sell orders accelerated the drop, briefly sending LINK to $12, its lowest level in months.
Moments later, buy orders flooded in as traders seized the opportunity to accumulate at deeply discounted prices, driving LINK quickly back above $16.50. This “V-shaped” rebound reflected both strong investor demand at lower levels and algorithmic trading bots restoring price equilibrium after excessive volatility.
Analysts note that if LINK maintains support above $16, it could recover toward $18–$19 once broader market sentiment stabilizes. However, another wave of Bitcoin weakness could easily drag LINK back toward $14 before consolidation resumes.