Chainlink's LINK Tumbles 6% as Technical Breakdown Trumps UBS, FTSE Partnership
The price of Chainlink's native token, LINK, fell below a critical support level of $14.50, declining 6% amid high trading volumes, which surged 57.81% above the seven-day average. Despite major institutional partnership announcements with UBS and FTSE Russell, LINK's bearish trend was confirmed by a break below $15.26 and further decline to $14.70. The technical analysis suggests a descending channel formation, further downside toward $14.00, and potential oversold conditions for recovery.
Oracles
Chainlink Token Breaks Key Support Levels
Native token of oracle network Chainlink (LINK) dropped 6% to below $14.50 on Tuesday, according to CoinDesk data. The decline marked a breach of key technical support levels at $14.46. This drop occurred with a massive volume surge of 57.81% above the seven-day average, signaling aggressive distribution rather than thin-market selling, as noted by CoinDesk Research's technical analysis.
Major Institutional Partnerships Fail to Boost LINK
The decline in LINK's price occurred even as major institutional partnerships were announced, which would typically fuel a rally. For instance, Swiss banking giant UBS completed the world's first end-to-end tokenized fund transaction using Chainlink's Digital Transfer Agent standard. Furthermore, FTSE Russell shared plans to bring Russell 1000, 2000, and 3000 indices onto blockchain using Chainlink's DataLink services.
Technical Weakness Versus Fundamental Adoption
Despite these significant partnerships, LINK's price action underlines how short-term technicals frequently override fundamental developments. The decisive break below the $15.26 support level happened during morning trading, accompanied by exceptionally high volumes of 4.69 million tokens. By the close of the trading day, LINK had plunged further, crashing from $15.22 to $14.70, with more than 3.5 million tokens traded in the final hour. This continued weakness confirmed the bearish structure, hinting at possible oversold conditions for any recovery attempts.
Key Technical Indicators Highlight Bearish Momentum
- Support Zones: A critical test is underway at the $14.50-$14.60 demand zone following the breakdown.
- Volume Analysis: A 57.81% surge above the seven-day average reinforces the validity of the breakdown.
- Chart Patterns: The formation of a descending channel confirms the shift to bearish momentum.
- Targets & Risks: Further weakness toward $14.00 is likely before any stabilization occurs.
Disclaimer
Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to standards. For more information, see CoinDesk's full AI Policy.