Why did the price of LINK fall?

Chainlink’s price dropped 5.55% in the past 24 hours, underperforming the overall crypto market, which fell 3.71%. Here’s why:

1. ETF Hype Fades: Excitement around Chainlink’s ETF approval has cooled after XRP and Dogecoin got their green lights.
2. Technical Weakness: LINK broke important support levels, showing signs of further decline.
3. Market Caution: The Crypto Fear & Greed Index is at "Neutral" (41), indicating investors are being careful with their money.

In-Depth Look

1. ETF Speculation Slows Down (Negative Impact)

The U.S. Securities and Exchange Commission (SEC) recently made it easier to approve ETFs (Exchange-Traded Funds), which helped boost XRP and Dogecoin prices in mid-September. However, Chainlink’s ETF application is still being reviewed, with no clear timeline for approval. Because of this uncertainty, some investors are selling their LINK holdings. Historically, when ETF approvals stall, prices often pull back as traders take profits.

What this means: Without a clear catalyst like an ETF approval, Chainlink is losing attention to other altcoins that seem more promising right now.

2. Technical Signals Point to More Selling

• Support Levels Broken: LINK’s price fell below its 7-day and 30-day simple moving averages (SMAs), which are key indicators traders watch. This suggests downward momentum.
• Oversold but Weak: The Relative Strength Index (RSI), which measures if an asset is overbought or oversold, is at 40.61—close to oversold but not signaling a strong rebound yet. The MACD indicator also shows continued selling pressure.
• Fibonacci Levels: LINK dropped below the 23.6% retracement level ($24.7), exposing the next support at $23.96.

What to watch: If LINK falls below $20.84, it could test $19.50, a key psychological support level where buyers might step in.

3. Altcoin Season Slows

The Altcoin Season Index, which measures how well alternative cryptocurrencies are doing compared to Bitcoin, dropped to 72 from 77 last week. This means investors are moving money out of mid- and large-cap altcoins like Chainlink. Even though Chainlink has new partnerships, such as SOOHO.IO’s KRW stablecoin pilot, tokens tied to hot trends like AI and memes are getting more attention right now.

What this means: Chainlink, which is mainly used in decentralized finance (DeFi), is struggling to compete with more speculative tokens in a cautious market.

Conclusion

Chainlink’s recent price drop is due to fading ETF excitement, technical breakdowns, and a cautious overall market mood. While its long-term outlook remains strong thanks to growing institutional use and cross-chain technology, short-term trading favors a period of price stability or consolidation.

Key level to watch: Can LINK climb back above $21.57? Doing so could challenge the current downtrend. Keep an eye on ETF news and Bitcoin’s price movements for clues about the broader market direction.

What could affect the price of LINK?

Chainlink's price is balancing between growing business use and the ups and downs of the crypto market.

1. ETF Opportunities – New filings for spot ETFs could bring in big institutional investors.
2. Real-World Partnerships – Deals with companies like ICE and SWIFT increase Chainlink’s practical uses.
3. Whale Activity – Large holders have bought 8 million LINK since August, which could cause supply changes.

Deep Dive

1. ETF Momentum (Positive Outlook)

Overview: On August 26, 2025, Bitwise filed for the first U.S. spot ETF for Chainlink (LINK), following recent SEC rule changes that make it easier to list crypto ETFs. If approved, this could have a big impact similar to what happened with Bitcoin and Ethereum ETFs. For example, BlackRock’s Bitcoin ETF holds $32 billion in BTC, and Grayscale’s Ethereum ETF saw a 47% increase in inflows after approval.

What this means: If the ETF gets approved, market makers will need to buy LINK tokens to create the fund, which would increase demand. On the other hand, if the SEC rejects it, LINK’s price could drop by 15% or more, similar to what happened with XRP during its SEC case in 2023.

2. Enterprise Adoption (Positive Outlook)

Overview: Chainlink is now connected to over 2,400 projects, securing $93 billion in value. This includes partnerships with ICE, which provides metals pricing feeds tracking $3.4 billion in daily gold trades, and SWIFT, which is testing cross-border central bank digital currencies (CBDCs). The U.S. Department of Commerce also uses Chainlink to publish economic data on the blockchain.

What this means: Revenue from these business deals helps fund Chainlink’s Reserve, which automatically buys back LINK tokens (over $1 million worth since August 7). As more real-world assets get tokenized—a market expected to reach $30 trillion by 2030—Chainlink will earn more fees through its CCIP network, increasing demand for LINK.

3. Whale Activity (Mixed Impact)

Overview: Large holders, or “whales,” have bought 8 million LINK tokens (worth $164 million) since August, reducing the number of tokens available on exchanges by 33 million. However, one whale moved 170,000 LINK ($3.2 million) to the Kraken exchange on September 2, which could signal a potential sale.

What this means: Because a small number of wallets hold 45% of LINK tokens (each holding over 1 million LINK), price swings can be more extreme. A shortage of tokens could boost price rallies driven by ETFs, but if whales sell off their holdings, it could trigger a chain reaction of forced sales, especially given the $1.13 trillion in open crypto derivatives positions.

Conclusion

Chainlink’s price depends on turning growing business use into more staking demand while navigating the regulatory process for ETFs. Keep an eye on the CME CF Chainlink-Dollar Reference Rate—if it stays above market prices, it could indicate that big investors are accumulating LINK ahead of possible ETF approvals. The question remains: can LINK’s 76% long-term holders withstand the crypto market’s ups and downs?

What are people saying about LINK?

The Chainlink community is divided between hopeful technical breakouts and cautious bearish signals, but growing real-world use brings optimism. Here’s what’s making headlines:

1. U.S. Commerce Department partnership – boosts institutional trust
2. Price outlook: $52 target vs. $10.12 correction risk – mixed technical signals
3. Grayscale LINK ETF filing – sparks speculation but limited price impact
4. Strong developer activity – Chainlink ranks #2 in GitHub contributions

Deep Dive

1. @chainlink: U.S. Economic Data On-Chain – bullish

The U.S. Commerce Department is now publishing key economic data like GDP and inflation through Chainlink on 10 different blockchains.
– @chainlink (3.2M followers · 12.6K impressions · 2025-08-30 09:45 UTC)
View original post
Why it matters: This deal strengthens Chainlink’s position as a vital link between traditional finance (TradFi) and decentralized finance (DeFi), potentially speeding up the use of real-world assets (RWA) on blockchain platforms.

2. @ali_charts: Cup-and-Handle Pattern to $52? – mixed signals

There’s a possibility LINK could dip to $20 before climbing to $50, according to technical chart patterns.
– @ali_charts (478K followers · 82K impressions · 2025-09-03 16:03 UTC)
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What to watch: If LINK holds the $20 support level, it might rally. However, the 30-day Relative Strength Index (RSI) shows weakening momentum, suggesting caution.

3. @AkaBull_: Grayscale LINK ETF Filing – bullish but cautious

Grayscale has filed for a LINK exchange-traded fund (ETF) following the U.S. government partnership announcement.
– @AkaBull (112K followers · 9.1K impressions · 2025-09-08 16:49 UTC)
[View original post](https://x.com/AkaBull/status/1965095253016543526)
What this means: Although not confirmed, this news caused a spike in trading volume (6.8 million LINK in one hour), but the price only increased by 2.1%, indicating investors are optimistic but still cautious.

4. @Santimentfeed: Developer Activity – neutral

Chainlink ranks second in GitHub commits with 532 per month, outperforming projects like Avalanche and Stellar.
– Santiment (327K followers · 18.4K impressions · 2025-08-18 12:00 UTC)
View original post
Why it matters: Consistent developer work supports Chainlink’s long-term usefulness, even as the price dropped 16.42% over the past week.

Conclusion

Overall, opinions on Chainlink are mixed. Institutional partnerships and growing adoption are positive signs, but technical indicators warn of possible price corrections. Traders are watching the $24.85 resistance level closely to gauge the next move. Also, keep an eye on Bitcoin’s dominance (BTC.D), since LINK’s price tends to follow Bitcoin’s trends, with a 60-day beta of 0.87, meaning Bitcoin’s price swings often influence LINK’s short-term direction.

What is the latest news about LINK?

Chainlink is gaining attention thanks to ETF excitement and real-world use cases, even as the market remains unpredictable. Here’s the latest update:

1. KRW Stablecoin Pilot Launches (September 22, 2025) – Chainlink’s cross-chain technology helps reduce currency exchange costs for tourists in South Korea.
2. LINK ETF Approval Nears (September 23, 2025) – New SEC rules make Chainlink a strong candidate for upcoming crypto ETFs.
3. Federal Reserve Rate Cut Causes Mixed Reactions (September 18, 2025) – LINK’s price rose 5% after the rate cut but lagged behind other altcoins like AVAX, which jumped 12%.

In-Depth Look

1. KRW Stablecoin Pilot Launches (September 22, 2025)

What happened:
Chainlink teamed up with SOOHO.IO and Grand Korea Leisure to test a Korean Won (KRW) stablecoin payment system aimed at foreign tourists. Using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), this pilot program cuts foreign exchange fees by about 30% compared to traditional methods. Since July 2025, over $1 million in transactions have been processed.

Why it matters:
This shows Chainlink expanding beyond decentralized finance (DeFi) into regulated sectors like foreign exchange and tourism. If successful, it could lead to similar partnerships across Asia’s $200 billion travel market. However, the financial benefits depend on continued adoption of CCIP technology (MEXC).

2. LINK ETF Approval Nears (September 23, 2025)

What happened:
Chainlink is included in several spot ETF applications filed in the second quarter of 2025, alongside other major cryptocurrencies like Solana and Cardano. The SEC introduced new “general standards” rules on September 18, speeding up ETF approvals without lengthy individual reviews. Experts estimate there’s a 65% chance a LINK ETF will be approved by early 2026.

Why it matters:
If approved, a LINK ETF could boost Chainlink’s price significantly, similar to how Bitcoin and Ethereum surged 60-90% within three months after their ETF approvals. However, LINK’s recent 16% drop over the past week suggests some investors remain cautious about immediate institutional interest (CoinJar).

3. Federal Reserve Rate Cut Causes Mixed Reactions (September 18, 2025)

What happened:
After the Federal Reserve cut interest rates for the first time in 2025, LINK’s price increased by 5%. However, it underperformed compared to altcoins like AVAX (+12%) and SUI (+9%). Data from derivatives markets shows an 18% weekly increase in open interest, indicating traders expect price swings between $20 and $24.

Why it matters:
The rate cut generally favors cryptocurrencies by making borrowing cheaper and encouraging investment. Still, LINK’s strong price correlation with Bitcoin (0.82) means it may not see big gains unless there’s positive news like ETF approval or other catalysts (Cryptomus).

Conclusion

Chainlink is balancing promising infrastructure developments—like the KRW stablecoin pilot and potential ETF approval—with the challenges of a volatile market. Its current price of $20.53 reflects some bearish sentiment, down 15% over the past month. Still, milestones like $2.2 billion transferred via CCIP and the possibility of new ETFs could spark renewed interest. The key question remains: Will institutional investments through ETFs make up for slower growth in decentralized finance? Keep an eye on SEC decisions and how widely CCIP is adopted.

What is expected in the development of LINK?

Chainlink is making steady progress with these key milestones:

1. CCIP v1.5 Mainnet Launch (Q3 2025) – This update will let token creators easily connect their assets to Chainlink and support new technology called zkRollups.
2. Data Streams General Availability (Q4 2025) – Faster price updates will be available for more assets and blockchains.
3. Blockchain Abstraction Layer Development (2026) – A tool to help traditional financial institutions work smoothly across different blockchains.
4. Proof of Reserve Expansion (Ongoing) – Expanding audits to cover tokenized assets like gold, oil, and foreign currencies.
5. Digital Assets Sandbox Growth (2025-2026) – A testing environment for banks to try out tokenized assets using Chainlink’s services.

Deep Dive

1. CCIP v1.5 Mainnet Launch (Q3 2025)

Overview:
The Cross-Chain Interoperability Protocol (CCIP) is Chainlink’s system that connects different blockchains. The upcoming v1.5 update will allow token issuers to connect their tokens to CCIP without needing special permission and customize how their tokens behave, such as setting limits on transactions. It will also support zkRollups, a technology that helps process transactions faster and cheaper on Ethereum-compatible blockchains (Chainlink Q2 2024 Update).

What this means:
This is positive news for LINK holders because CCIP is becoming the go-to bridge for big financial players like ANZ and DTCC, which could increase Chainlink’s revenue. However, delays in security checks or competition from other blockchain bridges could pose risks.

2. Data Streams General Availability (Q4 2025)

Overview:
Chainlink’s Data Streams provide very fast price updates, currently in early testing. They plan to fully launch this service by the end of 2025, focusing on markets like perpetual futures on blockchains such as Arbitrum and Avalanche. They also aim to include U.S. stock and ETF price data (Q4 2023 Update).

What this means:
This development is somewhat positive. For example, GMX V2, a trading platform, has seen 40% less price slippage using these fast updates. Still, wider adoption depends on avoiding issues during volatile market conditions.

3. Blockchain Abstraction Layer Development (2026)

Overview:
This is a new tool designed to help traditional financial institutions (like banks) interact with any blockchain easily through CCIP. It aims to reduce the complexity of connecting to multiple blockchains. Chainlink is already testing this with SWIFT, the global payment network, for cross-border payments (News).

What this means:
This is a strong long-term positive because it could bring huge amounts of traditional finance money into blockchain systems. However, regulatory hurdles around tokenized assets might slow progress.

4. Proof of Reserve Expansion (Ongoing)

Overview:
Proof of Reserve is a way to verify that tokenized assets (like digital gold or foreign currencies) are backed by real-world reserves. Chainlink is expanding this service to include commodities like gold and oil, as well as currency pairs such as the Euro and Japanese Yen, supporting companies like Backed Finance and Maple (Q2 2024 Update).

What this means:
This is good for LINK’s role in traditional finance, but success depends on partnerships with auditors (like Deloitte) and clear regulations around stablecoins.

5. Digital Assets Sandbox Growth (2025-2026)

Overview:
Chainlink is creating a secure, regulation-friendly environment where banks can experiment with tokenized assets. Early participants include U.S. Bank and State Street (Q2 2024 Update).

What this means:
In the short term, this is neutral since it mostly involves testing. But if these trials lead to real transactions by 2026, it could be very positive. Keep an eye on how many tests turn into live use cases.

Conclusion

Chainlink’s roadmap focuses on making blockchain technology easier for institutions to adopt (through CCIP and the abstraction layer) and improving decentralized finance with faster data (Data Streams). While there are risks in delivering these complex projects, success could establish LINK as a key player in the growing $30 trillion tokenization market. It will be interesting to see how competitors like Pyth respond to Chainlink’s focus on enterprise solutions.

What updates are there in the LINK code base?

Chainlink is focusing on expanding its cross-chain capabilities and adding features designed for enterprise users.

1. Node Upgrade (August 1, 2025) – Chainlink Node v2.26.0 improves performance for decentralized oracle operations.
2. CCIP Expansion (July 28, 2025) – Support added for 9 new cross-chain tokens, including BTR and stBTC.
3. Candlestick API Launch (August 12, 2025) – New Open-High-Low-Close (OHLC) data streams introduced for institutional trading.

Deep Dive

1. Node Upgrade (August 1, 2025)

Overview: Chainlink Node v2.26.0 makes running nodes more efficient by optimizing how it handles gas fees and data requests.

This update reduces delays in processing fast-moving data by 18% compared to the previous version. This is especially important for decentralized finance (DeFi) platforms that need price updates in less than a second. It also adds detailed permission controls, which help businesses manage operations across multiple blockchains more securely.

What this means: This is a positive development for LINK because it strengthens Chainlink’s reputation as a reliable oracle network, especially for institutional users who require highly accurate, real-time data. (Source)

2. CCIP Expansion (July 28, 2025)

Overview: The Cross-Chain Interoperability Protocol (CCIP) now supports tokens like BTR and ILMT across more than 50 blockchains.

This allows developers to connect real-world assets (RWAs) and DeFi tokens with consistent security standards. The update follows JPMorgan’s recent use of CCIP for cross-border payments.

What this means: While this may not immediately impact LINK’s price, it’s strategically important. It broadens Chainlink’s role in cross-chain infrastructure, positioning it well for the expected growth in tokenizing real-world assets. (Source)

3. Candlestick API Launch (August 12, 2025)

Overview: Chainlink now offers OHLC data streams, similar to traditional stock market charts.

This API provides candlestick data from 1-minute to 1-hour intervals, enabling platforms that trade derivatives to create products like those on the Chicago Mercantile Exchange (CME) directly on blockchain networks. Institutional trading firms like GSR are already using this feature.

What this means: This is a positive step for LINK as it helps bridge the gap between cryptocurrency and traditional finance, potentially opening up new revenue opportunities through structured financial products. (Source)

Conclusion

Chainlink’s latest updates focus on attracting institutional users by improving node performance, expanding cross-chain support, and integrating traditional financial data formats. With over 363 monthly GitHub commits focused on enterprise solutions, the key question is how these improvements will affect LINK’s role in the growing $2 trillion+ real-world asset market expected by 2026. Keep an eye on Chainlink’s revenue after Q3 earnings for insights.