Chainlink’s price has fallen for four straight weeks and has reached a key support level near $12, its lowest point since June. The token is now down about 55% from its yearly high.
The drop comes despite positive on-chain data. Exchange balances for LINK have fallen from 300 million tokens last month to 213 million, according to Nansen. Lower exchange supply usually signals that investors are holding their tokens rather than selling.
Chainlink’s reserves have also increased. The project added over 81,000 tokens to its strategic reserves on November 20, bringing the total to about 884,000 LINK. These reserves come from on-chain and off-chain fees.
Attention is now turning to a potential Chainlink ETF launch. Bloomberg analyst Eric Balchunas expects Grayscale to introduce the GLINK ETF next week, and Bitwise’s Chainlink ETF has also appeared on the DTCC list. These products could boost demand by giving U.S. investors easier access to LINK.
Chainlink continues to benefit from growth in real-world asset (RWA) tokenization. The sector has risen to more than $35.6 billion in value over the past month, and Chainlink remains the leading oracle provider for RWA platforms.
Technical indicators show continued downside risk. LINK has formed a head-and-shoulders pattern on the weekly chart and is now sitting at the neckline. A drop below this level could push the price toward $10. The RSI is still falling and has not reached oversold conditions, and LINK remains below all major moving averages.
A move above $17.83, the May 12 high, would invalidate the bearish outlook.
