Chainlink Price Drops 11%: Sell-Off and ETF Impact

Chainlink Price Drops 11% on Sell-Off Despite ETF Launch

2 December 2025 at 15: 15

Reading time: 2 minutes

The LINK token, connected to the oracle network Chainlink, broke through the important psychological barrier of $12 on Monday, a significant blow to the broader crypto market that is in a pullback phase. Expectations surrounding the imminent launch of a US spot ETF (exchange-traded fund) for the LINK token is being overshadowed by current market dynamics.

Over the past 24 hours, the price of LINK has fallen by more than 11%. Technical analysis from CoinDesk Research points to a bearish situation, meaning the price is under pressure. Despite the positive news that asset manager Grayscale is converting its closed-end LINK trust into an ETF structure, which would be a crucial step towards market acceptance, traders seem to be more focused on the technical fluctuations than on this important regulatory milestone. ETF analyst Nate Geraci has speculated that the ETF could begin trading on NYSE Arca as early as this week, but the market reaction has not been reflected in this.

Trading volume rose to 7,14 million LINK tokens in recent days, roughly 280% above the daily average, a clear sign of institutional selling pressure. The price dropped to $11.94, creating a bearish pattern of consecutive lower highs, confirming downward pressure on the market.

This weakness in LINK reflects broader risk sentiment currently impacting the crypto market, given that Bitcoin fell almost below $84,000 in the early hours of the US trading day, fueled in part by macroeconomic uncertainties and speculation about interest rate hikes by the Bank of Japan.

Key levels to watch

Direct support for the LINK token is now set at $11.87, while resistance is at $12.26, the previous breakout point. The trading volume of 7,14 million tokens demonstrates a significant increase in activity, confirming the ongoing selling pressure. The chart shows a break below a descending trendline, with an 11,7% drop across a range of $1,56.

If the downtrend continues, we could try to reach the $11.70 to $11.80 range, with the November lows of $11.39 a relevant level to watch. For investors, this means it's crucial to closely monitor technical indicators and market psychology to make well-informed decisions.

Frequently Asked Questions

What are the main factors that influence the price of LINK?
The LINK price is influenced by both technical market signals and important developments in the regulatory environment, such as the launch of ETFs and institutional involvement.

How can institutional selling pressure affect the market?
Institutional selling pressure can lead to a reduction in confidence among retail investors and can put significant pressure on the price, as is currently visible with LINK.

What are the expectations for the LINK token when the ETF actually launches?
If the ETF actually takes off, it could potentially drive positive price action, provided market sentiment stabilizes and investor appeal increases.

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