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- LINK has fallen to $9.1 with strong seller dominance across spot and futures markets.
- Exchange inflows and yearly-low open interest point to continued risk-off behavior.
- Bitcoin’s broader downturn is adding pressure to Chainlink’s recovery prospects.
Chainlink (LINK) is under heavy pressure as crypto markets slide deeper into early 2026. The token has fallen below the psychologically important $10 level, touching $8.9 for the first time since September 2024, while broader risk sentiment weakens alongside Bitcoin’s four-month decline.
At press time, LINK trades near $9.1, down nearly 8% on the day and 21% on the week, with on-chain and derivatives data pointing to sustained seller dominance rather than a brief shakeout.
Sellers Overwhelm Chainlink’s Spot Market
Market activity shows a clear imbalance between buyers and sellers. Seller strength has climbed to 75 while buyer strength has dropped to 25, highlighting aggressive distribution.
Sell volume recently reached 26.2 million LINK versus 22.2 million in buy volume, creating a negative delta of roughly 4 million tokens. Exchange data reinforces this trend. More than 3.8 million LINK flowed into exchanges over two days, while only 2.3 million LINK exited, pushing Exchange Netflow to a positive 1.4 million — a classic signal of spot-market dumping.
This surge in exchange inflows suggests many holders are positioning to sell rather than accumulate, increasing downside risk.
Futures Traders Cut Exposure to Yearly Lows
Derivatives markets are also flashing warning signs. Open Interest has dropped to a yearly low of $458 million, while derivatives trading volume slid 22% to $1.09 billion.
CoinGlass data shows $318 million in futures outflows versus $312 million in inflows, producing a negative futures netflow of $6.49 million. Historically, simultaneous selling in spot and futures markets has often preceded sharper downside moves for altcoins.
With leverage being unwound, LINK lacks the speculative fuel typically needed for quick rebounds.
Technicals Signal Fragility Near $9
Chainlink’s Relative Strength Index (RSI) has fallen to 20, deep in oversold territory. While oversold conditions can sometimes spark short-term bounces, they also reflect intense selling momentum.
If pressure persists, LINK risks slipping below the $9 support zone, with $8.3 emerging as a potential next downside target. To shift sentiment, bulls would need to reclaim the short-term EMA20 near $11.5 — a level that currently looks distant.
LINK’s weakness mirrors a broader crypto downturn. Bitcoin has fallen to around $78,441, erasing most gains from last year’s rally and sitting near April 2025 levels.
Concerns around tighter monetary policy under a hawkish Federal Reserve outlook, fading ETF inflows, geopolitical tensions, and large liquidation events have weighed on sentiment. Although Bitcoin’s RSI is also oversold — hinting at a possible bounce — uncertainty remains high.
Also Read: Chainlink and Bitcoin at Risk: Are Major Sell-Offs Coming?
For Chainlink, that means recovery may depend not only on its own technical setup but also on whether Bitcoin can stabilize.
Chainlink’s drop below $10 reflects intense selling across both spot and derivatives markets, compounded by a fragile macro environment. While oversold indicators suggest selling pressure could eventually ease, LINK remains vulnerable as long as it trades below key moving averages. Until broader market sentiment improves, caution is likely to dominate LINK’s near-term outlook.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
