Down 6% as technical breakdown trumps UBS, FTSE Partnership

Native token of oracle network Chainlink CONNECTION$14.72 broke through key technical support levels on Tuesday, falling 6% to below $14.50, CoinDesk data shows.

The decline accelerated on massive volume that surged 57.81% above its seven-day average, signaling aggressive distribution rather than thin market selling, CoinDesk Research’s technical analysis model noted.

The weak price action fell despite major institutional partnership announcements that would typically fuel rallies.

Swiss banking giant UBS completed the world’s first end-to-end tokenized fund transaction using Chainlink’s Digital Transfer Agent standard. Meanwhile, FTSE Russell announced plans to bring the Russell 1000, 2000 and 3000 indices onto blockchain rails by tapping into Chainlink’s DataLink services.

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With large partnerships that do not prevent support breakdowns, LINK demonstrates how short-term techniques often override fundamental developments.

The decisive break below the $15.26 support level occurred during morning trading with an unusually high volume of 4.69 million tokens, establishing a clear descending channel that accelerated into the close.

The last hour of trading proved particularly destructive as LINK crashed from $15.22 to $14.70 on massive volume exceeding 3.5 million tokens. The breakdown confirmed the broader bearish structure while potentially creating oversold conditions for any recovery attempt.

Key technical levels signal further downside for LINK

• Support zones: Critical test at $14.50-$14.60 demand zone after breakdown.
• Volume Analysis: 57.81% rise above seven-day moving average validates breakout move.
• Chart Patterns: Descending channel formation confirms bearish momentum shift
• Objectives and Risk: Further weakness towards $14.00 likely before stabilization takes place.

Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.