Chainlink’s LINK token is trading near $10.88, testing a critical support band between $10.85 and $10.90 after pulling back from a September high above $13. The level previously acted as resistance before LINK broke higher in late August, and traders are watching whether it can hold as new support.
The macro backdrop worsened on Tuesday when the U.S. Senate failed to get the 60 votes needed to advance the Digital Asset Market CLARITY Act. The bill sought to establish a federal framework for digital assets and clarify SEC and CFTC responsibilities. Senator Elissa Slotkin said she voted no because ethics provisions were too thin, citing concerns about President Trump, his children, and his Cabinet profiting in crypto. Bitcoin and crypto-related equities including Coinbase and Circle came under pressure following the vote. Reuters noted a procedural path could allow reconsideration, but a clear route to comprehensive legislation is now harder to see.
Chainlink’s long-term case remains tied to institutional blockchain adoption and tokenized real-world assets. Earlier in September, the Wyoming Stable Token Commission adopted Chainlink Proof of Reserve for its FRNT token, providing near real-time onchain verification of reserves. In August, Wyoming also migrated FRNT’s cross-chain infrastructure to Chainlink’s Cross-Chain Interoperability Protocol after a security review, making CCIP the exclusive cross-chain solution.
Technically, the daily RSI has dropped to about 46, down from overbought levels above 80 in August, suggesting overbought conditions have cleared but buyers have not regained control. Holding above $10.85 keeps the $11.50–$12 range in focus, while a daily close below that support could open the door to a deeper pullback toward $10, where a rising daily trendline sits.
