Chainlink's native token, LINK, continues to trade below the $8 threshold, even as on-chain metrics and institutional interest point to expanding network adoption. The cryptocurrency briefly touched a two-year low of $6.99 over the weekend before staging a modest recovery, yet it remains under selling pressure.
Institutional Demand Remains Robust
Despite the token's price struggles, institutional investors are showing sustained confidence in Chainlink. LINK-focused exchange-traded funds (ETFs) recorded approximately $1.81 million in net inflows on Monday, bringing total net assets to $101.21 million. Notably, these products have experienced zero outflows since their launch on December 2, indicating a steady accumulation trend among institutional players.
This uninterrupted inflow streak suggests that professional investors view Chainlink's long-term value proposition as intact, even as the token's price has declined more than 60% over the past six months. The derivatives market also reflects a cautiously bullish shift: LINK futures open interest rose over 4% in the last 24 hours to $373.56 million, while the open-interest-weighted funding rate improved from -0.0023% to 0.0024%, signaling a slight tilt toward long positioning.
Network Growth Accelerates Despite Price Weakness
On-chain data from Santiment reveals that the number of wallets holding at least one LINK token climbed to 535,650 on Monday, the highest level since December 2022. While smaller holders typically have limited influence on short-term price action, the steady increase in wallet counts points to ongoing user adoption and gradual accumulation.
This trend reinforces Chainlink's role as a key infrastructure provider for decentralized oracle services, tokenized assets, and real-world asset (RWA) applications. The network's expanding ecosystem suggests that fundamental adoption continues to grow, even as the token price remains depressed.
Technical Hurdles Block Bullish Reversal
From a technical perspective, LINK remains trapped in a broader downtrend despite its recent rebound. The token is trading below all three major exponential moving averages on the 4-hour chart: the 50-day EMA at $9.04, the 100-day EMA at $9.48, and the 200-day EMA at $10.70.
The Relative Strength Index (RSI) has recovered from oversold territory to around 15, indicating improving momentum. However, the Moving Average Convergence Divergence (MACD) remains below the zero line, with the histogram still printing negative readings. This mixed signal suggests that selling pressure may be easing, but a confirmed reversal has yet to materialize.
For bulls to regain control, LINK must first overcome the $8.13 resistance level, which corresponds to the February low. A daily candle close above this level could open the door for a rally toward the 50-day EMA. Conversely, if the bearish trend persists, the $7.48 support level becomes critical. A breakdown below that could send LINK back toward its two-year low of $6.99.
For broader market context, see our coverage of Bitcoin's recent dip below $63K and Dogecoin's flirtation with yearly lows.
This article is for informational purposes only and does not constitute financial advice.
