Why did the price of LINK fall?

Chainlink (LINK) dropped 0.84% in the last 24 hours, while the overall crypto market gained 1.12%. Despite this short-term dip, LINK has risen 30.59% over the past 60 days, showing positive mid-term momentum. The recent pullback is due to several factors:

1. ETF Launch Delay – Tuttle Capital postponed the launch of its 2X leveraged LINK ETF to October 10, cooling short-term excitement (MEXC News).
2. Technical Resistance – LINK failed to break above $22.75, a key resistance level, and is now trading near $21.13, which acts as support.
3. Profit-Taking – After a strong 64% gain in 90 days, some investors are cashing out, especially as Bitcoin’s market dominance rises slightly to 58.54%.

Deep Dive

1. ETF Delay & Impact on Liquidity (Short-Term Bearish)

What happened:
Tuttle Capital’s 2X leveraged LINK ETF, part of a group of crypto ETFs, was delayed by regulators until October 10. These ETFs are designed to increase access for both retail and institutional investors, so the delay means less immediate buying pressure.

Why it matters:
LINK’s long-term outlook remains positive, especially with big players like UBS testing Chainlink’s technology for cross-border payments. But in the short term, traders might lower their expectations for new demand, especially as Bitcoin’s dominance grows and altcoins like LINK see less trading volume.

What to watch:
Keep an eye on the SEC’s approval process after October 10 and whether existing LINK investment products, like the Chainlink Reserve, see increased inflows.

2. Technical Resistance & Profit-Taking (Neutral)

What happened:
LINK hit resistance at $22.75, which is a key technical level based on the Fibonacci retracement from its May 2025 high of $25.58. The price pulled back and is now near $21.86. The Relative Strength Index (RSI) is at 47.24, indicating neither overbought nor oversold conditions.

Why it matters:
This pullback is normal after a big 64% gain over three months. Additionally, LINK has a 7% annual inflation rate due to token unlocks, which means more tokens are entering the market and putting some selling pressure on the price. Strong demand is needed to balance this out.

Key levels:
If LINK falls below $21.13 (another Fibonacci support level), it could drop further toward $19.91, a recent low. On the other hand, breaking back above $22.75 could signal renewed buying interest.

3. Market Rotation & Sentiment (Mixed Signals)

What happened:
Bitcoin’s market dominance increased slightly to 58.54%, suggesting that investors are moving money from altcoins like LINK back into Bitcoin. This shift is influenced by global uncertainties and growing demand for Bitcoin ETFs.

Why it matters:
LINK’s weaker performance is more about the overall altcoin market than any specific problem with Chainlink. The Fear & Greed Index stands at 59, which is neutral, showing that investors aren’t panicking but remain cautious about altcoins until Bitcoin’s price stabilizes.

Conclusion

LINK’s recent dip is mainly due to the delayed ETF launch, technical resistance, and a broader market shift toward Bitcoin—not because of any fundamental issues with the project. Chainlink continues to play an important role in blockchain adoption and tokenization, with partnerships involving major institutions like DTCC and SWIFT.

What to watch:
Will LINK hold the $21.13 support level as Bitcoin dominance rises, or will profit-taking push the price lower?

What could affect the price of LINK?

Chainlink’s price depends on big company partnerships, changes in token supply, and overall trends in the crypto market.

1. Big Company Partnerships (Positive) – Collaborations with SWIFT, DTCC, and the U.S. government increase demand.
2. ETF Speculation (Uncertain) – Grayscale and Bitwise’s ETF applications face delays due to SEC staffing issues during government shutdowns.
3. Token Supply Growth (Negative) – A 7% yearly increase in token supply puts pressure on price stability.

Deep Dive

1. Big Company Partnerships & Real-World Use (Positive)

Overview: Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is now part of important systems like SWIFT’s tokenized fund trials, DTCC’s blockchain data feeds, and a U.S. Commerce Department pilot that puts economic data on the blockchain (Cointelegraph). These deals make LINK a key player in managing trillions of dollars in tokenized assets, expected to reach $4 trillion by 2030 (crypto.news).

What this means: When big companies use LINK, it creates real revenue through fees from CCIP transactions. For example, since August 2025, the Chainlink Reserve has turned over $1 million in enterprise revenue into LINK buybacks (X).

2. ETF Momentum vs. Regulatory Challenges (Uncertain)

Overview: Grayscale and Bitwise applied to launch spot LINK ETFs in 2025, but approval depends on the SEC’s staffing situation during the U.S. government shutdown. Meanwhile, Tuttle Capital postponed its leveraged LINK ETFs to October 10, 2025, due to operational reviews (MEXC).

What this means: If approved, ETFs could boost LINK’s liquidity like Bitcoin’s ETF did in 2024. However, delays may cause short-term uncertainty. LINK’s 30-day price volatility (-2.02%) shows cautious investor behavior ahead of regulatory decisions.

3. Token Supply Growth & Large Holder Activity (Negative/Neutral)

Overview: LINK’s circulating supply grows about 7% each year (680 million out of 1 billion tokens released), which can create selling pressure. However, large holders (whales) bought 8 million LINK in August 2025 (around $175 million at $21.99 per token), reducing the amount of LINK available on exchanges by 33 million tokens since July (CoinMarketCap).

What this means: While new tokens add selling pressure, big investors accumulating LINK and the Reserve’s automated buybacks (193,000 LINK as of August 2025) help reduce supply over time. Still, everyday investors remain cautious about potential dilution.

Conclusion

Chainlink’s price outlook balances strong demand from big companies against challenges from token supply growth and regulatory delays. The key question is: Will revenue from institutional use (via CCIP and DataLink) grow fast enough to offset inflation before ETFs get approved? Keep an eye on the Chainlink Reserve’s activity and the SEC’s timeline after the government shutdown.

What are people saying about LINK?

Chainlink’s price discussions are swinging between hopes for a breakout and concerns about a possible pullback. Here’s what’s trending:

1. $52 price target – Large investors accumulating LINK and positive chart patterns are driving optimism.
2. Cup-and-handle breakout – Analysts expect LINK to reach $18–$19 if it stays above $14.
3. Turkey partnership buzz – New real-time data deals are creating short-term excitement.

Deep Dive

1. @johnmorganFL: $52 target on reserve buys

“Chainlink Reserve is buying $1 million worth of tokens every month – this could push LINK to $52 as fewer coins are available.”
– @johnmorganFL (42.7K followers · 256K impressions · August 15, 2025)
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What this means: This is a positive sign for LINK because when big players buy back tokens, it reduces the number of coins available to trade, which often leads to price increases.

2. @AMCryptoAlex: Cup-and-handle setup

“If LINK revisits $13.8–$14, it could set up a move to $18–$19, but there’s a risk of dropping to $10.12 if support fails.”
– @AMCryptoAlex (CMC Community · May 4, 2025)
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What this means: The technical chart shows potential for price gains, but there’s also a significant risk of a 32% drop if LINK falls below $14.

3. @MOEW_Agent: Mastercard/SWIFT adoption

“Chainlink’s CCIP now connects over 3 billion Mastercard users to blockchain technology – institutional interest is growing.”
– @MOEW_Agent (18.3K followers · 89K impressions · August 18, 2025)
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What this means: This is a strong positive for LINK because partnerships with major payment companies show real-world use of Chainlink’s technology, increasing its value.

Conclusion

The overall outlook for Chainlink is cautiously optimistic. While technical indicators and partnerships suggest potential price gains, there are still risks from broader economic factors. Traders should watch the $24.50 resistance level, which has been a tough barrier in August, and see if LINK can stay above the $21.04 support level, which is important for confirming the next price direction.

What is the latest news about LINK?

Chainlink is gaining momentum thanks to favorable regulations and growing interest from big institutions. Here’s the latest update:

1. Institutional Adoption Growth (October 5, 2025) – Chainlink teamed up with SWIFT and UBS to improve cross-chain fund management.
2. Boost in Tokenization Infrastructure (October 5, 2025) – Playing a key role in tokenizing $4 trillion in assets through cross-chain technology.
3. ETF Listing Delay (October 4, 2025) – The launch of a 2X leveraged LINK ETF has been pushed back to October 10 for SEC review.

Deep Dive

1. Institutional Adoption Growth (October 5, 2025)

Overview:
Chainlink has formed partnerships with the German Stock Exchange, providing real-time data across more than 40 blockchains, and with the U.S. Commerce Department, supplying important economic data. The passing of the GENIUS Act has removed some regulatory hurdles, speeding up adoption by banks and payment providers.

What this means:
This is positive news for LINK, as major institutions like SWIFT and DTCC are now using Chainlink’s oracle network to access reliable data. However, there are risks from competitors like Pyth and concerns about LINK’s token inflation rate of 7% per year. (Yahoo Finance)

2. Boost in Tokenization Infrastructure (October 5, 2025)

Overview:
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is essential for projects such as DTCC and Securitize, which are working to convert traditional assets like government bonds into digital tokens. According to Deloitte, the current fragmented infrastructure is holding back a $4 trillion growth opportunity.

What this means:
This development is somewhat positive for Chainlink. Its strong position in securing data for tokenized assets (holding 68% market share) makes it a key player. Still, the presence of isolated solutions in the market could slow down widespread adoption. (Crypto.news)

3. SWIFT Banking Integration (October 4, 2025)

Overview:
UBS is testing Chainlink’s CCIP with SWIFT to automate settlements of tokenized funds. This builds on last year’s Project Guardian, which targets the massive $100 trillion fund industry.

What this means:
This is a strong sign of Chainlink’s growing usefulness as banks start using blockchain technology. However, LINK’s price is still 56% below its all-time high from 2021, showing that the broader altcoin market remains cautious. (CoinDesk)

Conclusion

Chainlink’s real-world partnerships with SWIFT, supportive regulations, and role in tokenization infrastructure strengthen its position as the “orchestration layer” of blockchain technology. Still, concerns about token inflation and delays in ETF approvals suggest some short-term challenges. It remains to be seen if competitors like Pyth, backed by U.S. government partnerships, will challenge Chainlink’s leading position in oracle services.

What is expected in the development of LINK?

Chainlink’s roadmap is centered on improving how different blockchains work together, boosting data services, and encouraging use by big financial institutions.

1. CCIP Mainnet GA (Q4 2025) – Open, permission-free messaging and asset transfers across different blockchains.
2. Data Streams Expansion (2025–2026) – Faster data feeds for stocks, currency trading, and commodities like gold and oil.
3. Proof of Reserve for RWAs (2026) – Clear verification for tokenized real-world assets like real estate and government bonds.
4. Compliance Standard Launch (2026) – Built-in regulatory checks for decentralized finance (DeFi) aimed at institutions.

Deep Dive

1. CCIP Mainnet GA (Q4 2025)

Overview:
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will become fully available on its main network, allowing developers to create decentralized apps (dApps) that work seamlessly across multiple blockchains without needing special permissions. This follows partnerships with major financial players like Swift, DTCC, and ANZ Bank, aiming to connect traditional finance systems with blockchain technology.

What this means:
This is a positive sign for Chainlink (LINK) because wider use of CCIP could increase demand for its services, especially in markets where assets are tokenized (converted into digital tokens). For example, over $19 billion worth of assets have been unlocked through integration with Solana. However, there are risks such as competition from other projects like LayerZero and possible delays in adoption by large companies.

2. Data Streams Expansion (2025–2026)

Overview:
Chainlink’s Data Streams, which currently provide real-time data for U.S. stocks, ETFs, and foreign exchange, will expand to include commodities like gold and oil, as well as newer blockchain networks such as Arbitrum and zkEVMs. The upgrade will also introduce premium data formats and on-chain payment options.

What this means:
This development is somewhat positive because faster, reliable data feeds are essential for growing markets like derivatives trading. Success depends on the recovery of decentralized finance (DeFi) activity. The adoption of GMX V2 on Arbitrum, which handles about 90% of high-volume DeFi transactions on that network, shows promising momentum.

3. Proof of Reserve for RWAs (2026)

Overview:
Chainlink’s Proof of Reserve (PoR) system is being customized to verify tokenized real-world assets (RWAs) such as Treasury bills and real estate. Partnerships with Apex Group and Backed Finance aim to provide detailed transparency about the collateral backing these tokens.

What this means:
This is good news for LINK’s role in traditional finance because PoR helps build trust by proving that tokenized assets are fully backed. However, widespread use depends on clear regulations and cooperation from asset issuers.

4. Compliance Standard Launch (2026)

Overview:
Chainlink is working with the ERC-3643 Association to create a Compliance Standard that integrates Know Your Customer (KYC) and Anti-Money Laundering (AML) checks directly into smart contracts. Pilot programs include UBS and DigiFT, focusing on tokenized investment funds.

What this means:
This is a positive step toward institutional adoption of blockchain technology, although it faces competition from centralized compliance solutions. If successful, it could make LINK a key player in regulated asset tokenization.

Conclusion

Chainlink’s roadmap targets building the infrastructure needed for the growing $32 trillion tokenized asset market by combining cross-chain communication, fast data delivery, and regulatory compliance. While challenges remain in technology execution and regulatory approval, partnerships with major institutions like Swift, ICE, and J.P. Morgan indicate increasing trust from traditional finance.

Will Chainlink’s focus on hybrid smart contracts establish it as the foundational communication layer (like TCP/IP for the internet) for Web3?

What updates are there in the LINK code base?

Chainlink’s technology is advancing with new cross-chain features and infrastructure improvements.

1. Data Streams on Plasma & New Chains (Sept 25, 2025) – Faster, real-time data feeds are now available on Plasma and several new blockchains.
2. CCIP on 0G Mainnet (Sept 25, 2025) – Chainlink’s cross-chain protocol now supports the enterprise-focused 0G blockchain.
3. Solana Data Feeds Deprecation (Sept 17, 2025) – Chainlink is moving to a more efficient data model on Solana by retiring older data feeds.

Deep Dive

1. Data Streams on Plasma & New Chains (Sept 25, 2025)

What happened: Chainlink expanded its Data Streams to the Plasma blockchain (both mainnet and testnet) and four additional blockchains: 0G Aristotle, 0G Galileo, Jovay Mainnet, and Jovay Sepolia. These streams deliver market data updates in less than a second, which is especially useful for financial applications like derivatives and decentralized finance (DeFi).
Why it matters: This upgrade is positive for Chainlink (LINK) because faster, pull-based data feeds reduce delays, making them more attractive for high-speed trading and institutional investors. (Source)

2. CCIP on 0G Mainnet (Sept 25, 2025)

What happened: Chainlink’s Cross-Chain Interoperability Protocol (CCIP) launched on the 0G Mainnet, a blockchain designed for modular data availability.
Why it matters: This development is somewhat positive because it strengthens Chainlink’s ability to connect different blockchains, especially those used by enterprises. However, it’s still early to tell how widely 0G will be adopted. (Source)

3. Solana Data Feeds Deprecation (Sept 17, 2025)

What happened: Chainlink stopped supporting three Solana data feeds (21BTC PoR, zBTC PoR, OP-USD) to focus on the newer Data Streams model, which uses a pull-based approach.
Why it matters: This change might cause short-term issues for projects relying on the old feeds, but it’s a positive move long-term because the new model scales better with Solana’s high transaction volume. (Source)

Conclusion

Chainlink is focusing on improving cross-chain connections through CCIP and delivering faster, more efficient data with Data Streams. The transition from push-based to pull-based oracles on Solana shows a commitment to sustainable growth.

The big question: How will other oracle networks like Pyth respond as Chainlink expands its multi-chain presence?