LINK price weakens 8% amid broader market sell-off, even as on-chain data shows increased network activity and a major token repurchase by Chainlink Labs.
Chainlink’s native token (LINK) has dropped below a key support zone near $17, marking an 8% daily decline as selling pressure intensified across the crypto market. The fall comes despite the largest token buyback since August, signaling that macro headwinds and risk aversion are overshadowing otherwise positive on-chain developments.
On the technical front, LINK is trading around $17.11, slipping beneath the orange demand zone, which previously acted as a strong base for accumulation. The chart reveals that LINK has repeatedly tested this support since early October but failed to sustain a rebound toward the green resistance band near $20–$21.
A clear descending channel pattern from the April highs remains intact, indicating continued bearish sentiment. Traders are closely watching for a potential retest of the $15.50–$16.00 zone, which could determine whether LINK stabilizes or extends its decline.
Despite the negative price action, fundamental growth remains robust. The Chainlink network recently announced a new partnership with Ondo Finance, expanding the use of real-world asset (RWA) data oracles. Meanwhile, Chainlink Labs confirmed its largest token buyback program since August, aimed at bolstering ecosystem development and liquidity support.
“The current decline is largely market-driven rather than project-specific. Chainlink’s fundamentals are improving, but investors are reacting to broader risk sentiment ahead of the FOMC and macroeconomic uncertainty,” noted BitXJournal crypto strategist.
On-chain metrics also show a rise in whale accumulation and developer activity, which could signal confidence in LINK’s long-term trajectory. However, short-term volatility remains elevated, with traders reducing exposure as Bitcoin and Ethereum struggle to find direction.
While Chainlink’s price struggles below the $17 threshold, the underlying network growth, token buyback, and expanding institutional use cases suggest resilience beneath the surface. For now, market sentiment remains fragile, but analysts emphasize that sustained demand near the current range could set the stage for a rebound toward $20 once macro pressures ease.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.