Chainlink (LINK) Slumps 6% Despite Major Institutional Partnerships

Chainlink’s native token, LINK, fell sharply on Tuesday, plunging 6% to below $14.50 and breaking key technical support levels, according to CoinDesk data. The decline was fueled by a significant 57.81% surge in trading volume above the seven-day average, signaling intense selling pressure rather than routine market activity. Analysts at CoinDesk Research noted that the move reflected aggressive distribution, suggesting short-term traders are dominating sentiment despite strong fundamentals.

Interestingly, the downturn came even as Chainlink announced major institutional partnerships that would typically boost investor confidence. Swiss banking giant UBS successfully executed the world’s first end-to-end tokenized fund transaction using Chainlink’s Digital Transfer Agent (DTA) standard. Additionally, FTSE Russell revealed plans to bring its Russell 1000, 2000, and 3000 indices onto blockchain rails powered by Chainlink’s DataLink services.

Despite these bullish developments, technical factors overpowered the positive news. LINK decisively broke below the $15.26 support level during morning trading on heavy volume, forming a descending channel that continued throughout the day. In the final trading hour, the token fell further—from $15.22 to $14.70—as over 3.5 million tokens changed hands, confirming a bearish momentum shift in the short term.

Current technical readings point to additional downside risks. The next critical support zone lies between $14.50 and $14.60, with potential weakness extending toward $14.00 before stabilization occurs. While Chainlink’s partnerships underscore growing institutional blockchain adoption, traders should remain cautious. The recent volume spike validates the breakdown move, suggesting short-term pressure could persist even as long-term fundamentals remain strong.