Chainlink (LINK) has experienced a significant price decline, dropping nearly 12% from its January high to around $12.80, its lowest level since January 2. This sell-off coincides with a broader market downturn triggered by geopolitical tensions, specifically former U.S. President Donald Trump's decision to initiate a trade war with several NATO countries, which also impacted European and U.S. stock futures.
Technical analysis reveals several concerning patterns for LINK. The daily chart shows the formation of a bearish pennant pattern and a small double-top pattern with a neckline at $12.95. Furthermore, a death cross occurred on November 6, where the 50-day Exponential Moving Average crossed below the 200-day EMA, a pattern often considered a high-risk bearish signal. Analysts suggest these formations point to a potential further decline, with a bearish breakout possibly targeting the November low of $11.60.
Market data supports the downward pressure. Futures open interest for the broader crypto industry dropped 2.6% to $138 million, while liquidations surged 770% to $873 million. For LINK specifically, open interest fell to $620 million from a year-to-date high of $708 million, and over $3.3 million in bullish positions were liquidated.
Despite the negative price action and technical outlook, some fundamental metrics for Chainlink remain strong. The network continues to be the dominant oracle provider, with over $60 billion in Total Value Secured and approximately $27.75 trillion in Transaction Value Enabled. Its Cross-Chain Interoperability Protocol (CCIP) is widely adopted, and the Strategic LINK Reserve has grown to hold 1.59 million tokens, valued at over $20 million, reflecting ongoing accumulation since August 2025.
Institutional interest via ETFs has been mixed. While Grayscale's GLNK ETF has accumulated over $87 million in assets, Bitwise's recently launched CLNK ETF holds only about $2.6 million, indicating relatively weak demand since their approval in December.
