Chainlink’s LINK Token Drops 10% Amid Market Volatility and New Rewards Launch

Chainlink’s LINK token faced a sharp 10% decline on Monday, hitting its lowest level since the October 10 flash crash as it broke below key technical support zones. The downturn was marked by an extraordinary surge in trading activity — volumes spiked 674% above the 24-hour average, with over 12 million LINK tokens traded within just 30 minutes. During the rapid selloff, LINK tumbled from $16.21 to $15.02, according to CoinDesk Research’s technical analysis model.

The CoinDesk 5 Index reflected broader crypto market resilience, yet LINK underperformed it by over 5.8%, highlighting notable weakness in the token’s technical structure. Analysts attribute the slide to a failed breakout earlier in the week combined with a lack of new bullish catalysts. LINK now faces critical support around $15.25, with a potential downside target near $14.50 if buyers fail to defend the current range. Resistance remains firm at $17.66, while a sustained recovery could encounter selling pressure around the $20 mark.

Adding to the market dynamics, Chainlink announced “Rewards Season 1,” an incentive initiative launching on November 11. The program allows eligible LINK stakers to earn rewards from nine participating Chainlink BUILD projects, including Dolomite, Space and Time, and Truflation’s Truf Network. Participants will collect non-transferable reward points called Cubes, based on prior staking activity, which can be allocated to supported projects before reward distribution begins in mid-December.

With trading volume peaking at 12.4 million tokens, the technical picture for LINK signals continued caution for traders. The combination of heavy volume, failed breakout patterns, and limited fresh momentum suggests that Chainlink’s price could remain under pressure in the short term unless new market catalysts emerge.