LINK Down 742.65% in 24 Hours Amid Sharp Volatility Spikes

On AUG 29 2025, LINK dropped by 742.65% within 24 hours to reach $24.35, falling by 975.99% over the past week. Despite the steep short-term losses, the token has posted a 3770.69% gain in the last month and a 1644.18% increase over the past year, illustrating an erratic but ultimately bullish trajectory over a longer horizon. The abrupt intraday selloff has drawn attention from traders and analysts, who are now scrutinizing the factors contributing to the sharp volatility.

The price drop appears to have been driven by a confluence of algorithmic selling and order-book imbalances, rather than any fundamental news directly tied to the LINK project or its ecosystem. Market participants are analyzing whether the sell-off was triggered by stop-loss cascades or automated trading strategies reacting to rapid price declines. The 24-hour move was the most severe in LINK’s history and underscores the token’s exposure to market sentiment and liquidity conditions.

Technical indicators show that the price has broken below key support levels established over the past three months. A breakdown in the 50-period and 200-period moving averages suggests a potential continuation of downward momentum in the short term. However, the broader trend remains intact, with the RSI and MACD still suggesting strong long-term bullish potential, especially following the 3770% rise in the last 30 days.

Backtesting efforts are currently underway to understand how the recent volatility might be captured or mitigated by algorithmic strategies. One proposed approach is based on a predefined set of rules triggered by a 10% daily price drop. This strategy aims to test whether such a signal could be used effectively for trading decisions.