Chainlink’s native token, LINK, has taken a tumble, slipping 15% from its August zenith despite a series of seemingly bullish developments. As of today, LINK’s value rests at $22.4, marking a 2.8% dip over the past 24 hours, according to CoinDesk data, even as the broader market remains relatively stable.
The Market’s Mixed Signals
The cryptocurrency world is no stranger to volatility, and LINK’s recent descent underscores this truth. Just last month, the token was riding high, boasting a 37% surge — a standout performance among major digital currencies. This rally was fueled in part by Chainlink’s collaboration with the U.S. government to publish economic data on the blockchain and the buzz around Bitwise’s filing for a LINK exchange-traded fund (ETF). For more on the U.S. government’s blockchain initiatives, see our article on GDP data publication on Bitcoin and Solana. Yet, these headlines weren’t enough to sustain the momentum.
“There’s a looming sense of uncertainty in the market,” notes crypto analyst Jenna Thompson. “The broader pullback in Bitcoin and Ethereum since mid-August has certainly cast a shadow over LINK’s prospects.” This follows a pattern of institutional adoption, which we detailed in our coverage of Wall Street’s move towards spot Bitcoin and Ethereum trading.
Interestingly, this downturn persists despite efforts by the Chainlink Reserve, an automated mechanism that acquires tokens weekly, thereby reducing circulating supply. On Thursday, the Reserve purchased an additional 43,937 LINK tokens. Since its inception in early August, it has accumulated 237,014 tokens, valued at approximately $5.5 million at current prices.
Technical Roadblocks
From a technical standpoint, LINK faces formidable challenges. CoinDesk Research’s analysis reveals a trend of lower highs and lower lows, indicative of sustained bearish pressure. Support levels have been identified around the $22.28-$22.32 range, while resistance looms between $23.10 and $23.16, buoyed by strong trading volumes.
“The token’s technical setup isn’t particularly promising at the moment,” comments Victor Ng, a veteran technical analyst. “Until we see a clear break above resistance, it’s hard to be overly optimistic about a near-term recovery.”
Looking Back, Looking Forward
For those who’ve been following Chainlink’s journey, the recent decline is a reminder of the unpredictable nature of crypto markets. The token has been a darling in the decentralized finance (DeFi) space, often lauded for its role in providing reliable data feeds to smart contracts. However, the current market environment — marked by consolidation and retracement — poses questions about the sustainability of its previous gains.
As we advance into the latter part of 2025, the spotlight remains on whether LINK can shake off its bearish shackles. The Chainlink Reserve’s ongoing token purchases could eventually tilt the supply-demand balance. But for now, investors are left pondering the resilience of this oracle service’s native token amidst broader market headwinds.
There’s no crystal ball to predict LINK’s trajectory, but one thing’s for sure: the crypto sphere never sleeps, and neither does the intrigue surrounding Chainlink. Will the next chapter unfold with renewed bullish vigor, or will it be a continued test of patience for LINK holders? As always, the market holds its cards close to the chest, waiting for the right moment to reveal its hand.
Source
This article is based on: LINK Slides 15% From August Peak Even as Chainlink Reserve Removes $5.5M From Circulation
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
