Chainlink – Investors Interest [LINK] The price of the asset has continued to decline despite the negative market mood and the recent surge in its value.
In the last few days the broader crypto markets have shifted dramatically to the down side. This shift is reflected clearly in LINK’s pricing, where the token has dropped several critical support levels.
At press time, LINK lost 12.75% of its value over the past 24 hours and was trading at $8.01. Investor and trader activity has also increased significantly. This is reflected by a 76% increase in the trading volume, which now stands at $2.02 Billion.
A rise in volume when prices are falling indicates a growing level of fear. This suggests that the market is aligning itself with this current trend.
Investors eyes accumulation
The trend in investor behavior is quite strange, with tokens being added to the holdings.
Platform for On-chain Analytics SoSoValue The 5th of Feb 2026 will see the U.S. LINK Exchange-traded Funds (ETFs), which are a type of investment fund, recorded a $1.18million inflow.
The ETF capital inflow is a sign that Wall Street has increased its exposure to LINK Tokens.
Source: SoSoValue
According to analytics, in addition to ETF activities, the exchange reserves also decreased over the last 24 hours. CryptoQuant.
Data shows that Chainlink’s total exchange reserves across all platforms fell from 130,807,419 LINK to 130,270,399 LINK, a decrease of 537,020 LINK tokens. The drop in reserves is indicative of a possible accumulation as assets move from exchanges to private wallets.
CryptoQuant
LINK: Price action and important levels to monitor
On the daily chart it is apparent that LINK has recently declined and broken through a support level of $8.35 which had been in place since October 2023.
TradingView
Price also appeared to reverse during the drop. It tested another price support at $7.20. This was a level that LINK used as a zone of consolidation for LINK’s price before it broke above $8.35 in 2023.
A potential reversal may occur based on the past performance of LINK and its current price. If LINK maintains above $7.20 and reclaims $9.35 then a possible reversal is likely to unfold.
If the price does not hold the $7.20 level, the downward momentum may continue, and the price could drop another 20% in the next few days to $5.85.
A strong directional price trend is evident in LINK at this time.
Investors are bearish
According to a perspective of derivatives, intraday trader appear to follow the dominant trend. CoinGlass’ LINK Exchange liquidation map shows that traders have a strong position around $7.91 on the downside, and $8.42 on the upside.
They have approximately $4.32m in short leveraged position and $1.44m in long leveraged position.
CoinGlass
This is a clear indication of a bearish sentiment in the market.
Last Thoughts
- Chainlink (LINK), which had been trading at $8.35 since October 20,23, has now lost its support of the longstanding price.
- Even though the market has experienced a sharp fall and a key breakdown, it appears that investors are accumulating coins, while intraday trading continues to reflect prevailing negative trends.
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Source: ambcrypto.com
