Oracle Network Chainlink’s native token fell below $12 on Monday as a broader crypto market pullback overwhelmed expectations for the token’s U.S. spot ETF debut.
CoinDesk Research’s technical analysis tool notes that the LINK token has plunged more than 11% in the past 24 hours, with bearish technicals pointing to a collapse.
The weakness came despite news that asset manager Grayscale was preparing to convert its closed-end LINK trust into an ETF structure. Nate Geraci, a closely watched ETF analyst, said the ETF could begin trading on NYSE Arca this week.
Still, traders seemed more focused on technical glitches than regulatory milestones. CoinDesk Research’s technical analysis tool noted that LINK trading volume surged to 7.14 million, about 280% higher than the daily average, causing the coin to fall below the $13.00 support level. Price fell to $11.94, establishing a bearish structure of successive lower highs and confirming downward pressure.
The weakness also reflects broader risk sentiment in the cryptocurrency space, with Bitcoin tumbling to around $84,000 in early U.S. trading amid macro jitters and speculation of a rate hike by the Bank of Japan.
Key levels to focus on:
- Support/Resistance: Current support is at $11.87 and resistance is at the previous breakout point of $12.26.
- Volume analysis: The volume of 7.14 million tokens traded is 280% higher than average, confirming institutional selling pressure.
- Chart pattern: It fell below the downward trend line, with a decline of 11.7% and a range of $1.56.
- Targets and Risks: Further downside targets could be the $11.70 to $11.80 area, with the next level to watch being the November low of $11.39.
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and reviewed by our editorial team for accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
