Oracle network Chainlink’s native token broke below $12 on Monday as the broader crypto market pullback overwhelmed anticipation for the token’s US spot ETF debut.
The LINK token fell more than 11% over the past 24 hours, with a bearish technical picture pointing to a breakdown, noted CoinDesk Research’s technical analysis tool.
The weakness came despite news that asset manager Grayscale is set to convert its closed-end LINK trust into an ETF structure. Well-followed ETF analyst Nate Geraci said the ETF could begin trading this week on the NYSE Arca.
Still, traders seemed more focused on the technical breakdown than the regulatory milestone. A surge in volume to 7.14 million LINK, roughly 280% above the daily average, pushed the token below the $13.00 support level, CoinDesk Research’s technical analysis tool noted. Prices fell to $11.94, establishing a bearish structure with successive lower highs and confirming downward pressure.
The weakness also reflects broader risk-on sentiment in crypto, as bitcoin fell to near $84,000 in US morning hours amid macro turmoil and Bank of Japan rate hike speculation.
Key levels to watch:
- Support/Resistance: Immediate support is now at $11.87 and resistance at $12.26, the previous breakdown point.
- Volume analysis: 7.14 million token volume marked a 280% increase above average, confirming institutional selling pressure.
- Chart Patterns: Break below descending trend line with 11.7% decline above $1.56 range.
- Targets and Risk: Further downside could target the $11.70-$11.80 zone, with the November low of $11.39 as the next level to watch.
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
