Latest Chainlink (LINK) Price Analysis

Deep Dive

1. Macro-Driven Market Selloff

Chainlink’s decline mirrors the broader crypto slump. The catalyst was U.S. Treasury Secretary Scott Bessent stating on February 5 that the government cannot bail out crypto or direct banks to do so (Yahoo Finance), amplifying fears of a hawkish Federal Reserve under Trump’s nominee Kevin Warsh. This macro shock caused correlated selling across assets.

What it means: LINK acted as a high-beta altcoin, falling almost exactly in line with the market, indicating the move was not coin-specific.

Watch for: Bitcoin’s ability to hold $67,000 and any further U.S. policy announcements.

2. Leverage Unwind & Sector Pressure

Global crypto derivatives open interest rose 13.04% in 24h, and BTC liquidations totaled $352.85M, signaling a flush of leveraged longs. Social data shows Chainlink is frequently grouped with struggling Layer 1 and DeFi narratives, which are down over 10% daily.

What it means: Forced selling from over-leveraged traders compounded the downturn, while sector rotation away from infrastructure tokens like oracles added pressure.

Watch for: A stabilization in global funding rates (currently slightly positive) and open interest trends.

3. Near-term Market Outlook

Technically, LINK has broken below its recent swing low of $8.82 and trades under all key moving averages, with RSI at 35.06 nearing oversold. The nearest Fibonacci retracement resistance is $9.26 (50% level).

What it means: The structure is bearish but approaching levels where selling may exhaust. A hold above $8.00 could set a near-term base.

Watch for: A daily close above $9.26 to signal a potential relief rally; a break below $8.00 could accelerate losses toward $7.50.

Conclusion

Market Outlook: Bearish Pressure Chainlink’s drop is a symptom of a macro-driven crypto washout, amplified by leverage and sector weakness. Key watch: Whether Bitcoin can reclaim $70,000 to ease altcoin selling pressure, or if further policy headlines extend the risk-off move.

Deep Dive

1. Technical Rebound from Multi-Year Support (Bullish Impact)

Overview: LINK retested the $9.65 support zone (August 2024 low) on February 3, triggering a 1% bounce as buyers defended this historically significant level. The RSI14 (25.95) indicates oversold conditions, while the MACD histogram (-0.2879) shows slowing bearish momentum.
What this means: Technical traders often view such retests as accumulation zones. With 24h volume up 18.75% to $1.03B, the bounce suggests short-term profit-taking from bears and dip-buying activity. A sustained hold above $9.65 could fuel a relief rally toward $10.18 (Fibonacci 78.6% level).

2. Real-World Asset Dominance (Mixed Impact)

Overview: Chainlink secured 70% of RWA development activity in 2026, per Santiment, trailing only Hedera. Its Cross-Chain Interoperability Protocol (CCIP) enables tokenized asset transfers for institutions like Euroclear and DTCC.
What this means: While RWA adoption is a long-term bullish narrative, recent LINK price action hasn’t reflected this growth. The 24h uptick likely reflects sentiment shifts as investors position for Chainlink’s role in bridging TradFi and DeFi.

3. Spot ETF Inflows Amid Market Outflows (Bullish Signal)

Overview: Bitwise’s Chainlink ETF (GLNK) attracted $1.08M inflows on January 26, while most crypto funds saw $1.7B outflows last week.
What this means: LINK was one of few assets with net positive institutional demand, signaling selective confidence in its infrastructure role. However, ETF volumes remain low ($4.3M AUM), limiting immediate price impact.

Conclusion

LINK’s minor rebound reflects technical buying at a key support level and niche institutional interest in its RWA integrations, though broader crypto market weakness (-1.66% total cap) caps upside. Key watch: Can LINK hold above $9.50 and attract follow-through volume, or will macro headwinds reignite selling pressure?