Despite positive institutional headlines, LINK’s price action turns bearish with eyes on $14 support zone
Chainlink’s native token LINK faced renewed selling pressure on Tuesday, dropping nearly 6% to $14.89, as a technical breakdown overshadowed recent bullish sentiment from new institutional collaborations.
The decline came even after Chainlink’s integration news with UBS and FTSE-linked initiatives briefly lifted market optimism earlier in the week. However, traders quickly shifted focus back to charts, where LINK’s price broke decisively below the $15.50–$16.00 support zone, confirming what analysts described as a “broader structural weakness” in the current market setup.
“The $15 area was the last near-term defense. Losing that level puts the $14 zone in play — a key demand region that previously triggered rebounds in August,” said one BitXJournal technical strategist.
On the 4-hour chart, LINK is trading below all major moving averages, with volume spikes accompanying each sell-off phase — a signal that institutional participants may be unwinding positions after failing to sustain momentum above $20 earlier in October. The next notable support lies between $13.80 and $14.20, highlighted by the orange zone on the chart.
Still, not all observers are pessimistic. Some market participants argue that the recent dip could be a “liquidity sweep” before accumulation resumes. “Chainlink’s long-term structure remains strong as long as the $14 base holds. The ecosystem fundamentals are improving, even if price action looks weak short term,” .
If LINK reclaims the $16 zone, it may trigger a short-covering rally toward $18; however, failure to defend $14 could open the path toward $12.80.
For now, the market appears focused on whether buyers can stabilize LINK near $14.50, with traders closely watching volume reactions in that region.
Chainlink’s price action suggests that technicals—not partnerships—are currently dictating sentiment, with the $14 level standing as the make-or-break point for bulls.
Disclaimer
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