Chainlink's Value Plummets Even as Ecosystem Surges by $26 Trillion

Chainlink (LINK) is currently facing a critical juncture, as both technical signals and blockchain data suggest a challenging outlook for the token. After slipping beneath the $14.50 mark—a level that had provided strong support for several months—LINK continued to fall, reaching its lowest point in about two and a half months at approximately $13.70,

. This decline, fueled by heightened selling activity and the triggering of algorithmic stop-losses, has traders on edge, anticipating a further drop that could see LINK approach $11 or even $9 if persists .

The technical downturn was further validated by a 118% increase in trading volume within a single day, indicating that larger investors were involved in the selloff

. In less than 36 minutes, a swift liquidation of 360,000 tokens highlighted the vulnerability of LINK’s price structure . Despite these losses, blockchain data revealed an interesting contradiction: the Reserve increased its holdings by 74,049 tokens, pushing its total above 800,000 LINK—yet the average purchase price is still 27% higher than the current value, pointing to substantial unrealized losses .

. Despite these setbacks, institutional interest and the integration of real-world assets (RWA) continue to support a positive long-term outlook. Chainlink’s latest collaboration with and its growing involvement in tokenized bonds and business solutions have strengthened its reputation as a connector between blockchain technology and conventional finance . The Transaction Value Enabled (TVE) by Chainlink’s oracles has now exceeded $26 trillion, demonstrating the platform’s significance even amid short-term price swings .

Meanwhile, overall market sentiment remains strongly negative. The crypto fear and greed index has dropped to an extreme fear reading of 17 out of 100, while

dominance has risen to 58.79% as investors seek safer assets . This move toward safety has increased the pressure on alternative coins such as , which declined by 1.46% in the past day and has dropped 14% over the week . While large holders have accumulated about 150,000 LINK since late October, smaller investors have reduced their positions, with on-chain data showing nearly 4 million tokens sold by retail participants during the same timeframe .

. The recent listing of the Bitwise Chainlink ETF on the DTCC has added another dimension to the situation. Although being included on pre-launch lists has enhanced the fund’s institutional standing, it hasn’t been enough to counteract retail selling, and the Relative Strength Index (RSI) is still below neutral at 41.72

. Experts warn that unless LINK can consistently recover above $15.44—a crucial pivot—the path to $17–$18 will remain blocked, with the 200-day EMA at $18.02 serving as a strong resistance level .

Currently, LINK’s future depends on a narrow margin: maintaining support between $14.40 and $14.50 could help prevent deeper losses, but falling below $13.71—a trendline that has supported prices since mid-2023—would likely indicate a more significant correction

. As the market waits for updates on the SEC’s ETF approval process, Chainlink’s ability to steady its price and regain momentum will be a key test of its long-term adoption story.