Chainlink’s LINK token fell 3% to $10.20 in the last 24 hours, caught in a wider market downturn that pushed Bitcoin below $80,000. The move puts the token in a precarious position, testing key support levels even as data shows institutional demand for LINK exchange-traded funds remains positive.
Despite the red on the charts, spot LINK ETFs recorded inflows of $2.44 million on Wednesday and $1.91 million on Monday, according to data from SoSoValue. The consistent buying pressure from institutional funds contrasts sharply with the broader market, where Bitcoin ETFs saw a record $635 million in outflows. The demand was further underscored when asset manager Fidelity International announced the launch of its first tokenized fund, FILQ, powered by Chainlink’s technology.
The bearish sentiment dragging down LINK stems from the performance of market leaders. Bitcoin and Ethereum have dropped below the key psychological levels of $80,000 and $2,300, respectively. This has created a risk-off environment, with large-scale outflows from Bitcoin ETFs suggesting that institutional traders are reducing their overall crypto exposure.
Still, on-chain data for Chainlink offers a counter-narrative. Trading volume for LINK surged to $741 million, and its social dominance reached a new yearly high, according to data from Santiment, indicating growing retail interest. For now, bulls have successfully defended the critical support zone at $9.91. Analysts are watching to see if the persistent ETF inflows are enough to drive a rebound toward the initial resistance at $10.78, or if the broader market weakness will pull LINK lower.
This article is for informational purposes only and does not constitute investment advice.
