Chainlink's native token faced a significant drop below $12 on Monday, affected by a broad downturn in the cryptocurrency market that overshadowed the positive news about the token’s upcoming U.S. spot ETF debut.
sharp decline despite promising etf developments
The LINK token fell over 11% within 24 hours, showing a bearish technical outlook that indicated a breakdown. This decline occurred even as asset manager Grayscale prepared to convert its closed-end LINK trust into an ETF structure, with forecasts suggesting ETF trading could begin soon on the NYSE Arca exchange.
market participants focus on technical signals
Investors showed heightened attention to the technical breakdown over regulatory milestones. Trading volume surged sharply to 7.14 million LINK tokens, approximately 280% above average, pushing prices below the key $13 support level and confirming institutional selling pressure.
The token price dropped to $11.94, creating a bearish pattern of consecutive lower highs that highlights continued downward momentum.
broader crypto market context impacts link
This price weakness aligns with a broader risk-averse sentiment in the cryptocurrency sector, where Bitcoin also fell to near $84,000 amid macroeconomic concerns and speculation about an interest rate hike by the Bank of Japan.
key technical levels and outlook
Market watch points include support levels near $11.87 and resistance around $12.26, the resting place of the recent breakdown. The volume spike reinforces selling pressure behind the decline.
The token broke below a descending trendline, suffering an 11.7% drop over a $1.56 price range. Downside targets lie around $11.70 to $11.80, with the November lows near $11.39 representing critical support to watch.
future price expectations amid volatility
Despite short-term bearish pressure, technical forecasts and market analysis indicate a potential recovery as Chainlink’s ETF structure enters the market. Price predictions for the coming weeks and months suggest the token may rise back above $13, with some estimates projecting growth well into 2026.
Market sentiment remains cautious with continued volatility, but Chainlink's fundamental developments could support a rebound as investor confidence stabilizes.