Chainlink slips below $11 after 22% sell-off – Can LINK bulls defend THIS zone?

ambcryptoОпубліковано о 2026-02-01Востаннє оновлено о 2026-02-01

Анотація

Chainlink (LINK) experienced a sharp 22% sell-off in late January 2026, breaking below its key $10.6–$11.75 support zone and causing its RSI to hit multi-year lows. The decline occurred amid a broader crypto market downturn. Despite the price weakness, on-chain data showed persistent buying interest, with the Taker Buy Dominant metric remaining high, suggesting accumulation by institutional investors. Liquidity clusters were identified near $12, which could serve as a potential stabilization zone. Additionally, the surge in LINK's Total Supply in Loss to around 400 million tokens has historically preceded market bottoms, indicating a potential price reversal may be near.

Chainlink fell 22% in the final days of January 2026, raising questions about the durability of its multi-month uptrend.

The sell-off decisively broke the $10.6–$11.75 support zone, a range that had held since mid-November 2025 and aligned with key Fibonacci Retracement levels.

That breakdown coincided with LINK’s Relative Strength Index (RSI) dropping to its lowest level since 2022.

The move unfolded alongside a broader market drawdown, as Bitcoin fell below $85,000, amplifying risk-off pressure across altcoins.

Even so, the decline forced traders to reassess whether the move marked capitulation or the start of a deeper correction.

Taker buying persisted despite price weakness

According to CryptoQuant data, despite Chainlink’s [LINK] sharp drop to $13 in November 2025, the Taker Buy Dominant metric stayed elevated, reflecting relentless buying pressure. That said, institutional investors saw LINK as undervalued, which fueled continued accumulation even as prices fell.

This ongoing buying interest clearly showed that Chainlink’s potential wasn’t being overlooked.

Liquidity built near $12 as downside slows

CoinGlass Liquidation Heatmaps highlighted dense liquidity clusters between $12 and $13 during the late-January sell-off. Price repeatedly interacted with this zone before stabilizing near the lower end of the range.

A reclaim above $11 could attract liquidity-seeking flows and force short-covering, potentially opening a path back toward $13. Until then, sellers retained control of the broader trend.

Supply in loss surged toward historical extremes

According to Glassnode analysts, the total supply of LINK in loss surged to around 400 million. This spike indicates that a large portion of LINK holders are currently underwater.

Historically, spikes in this metric have been precursors to market bottoms and subsequent recoveries.

For instance, during the 2022 market downturn, a similar surge in Total Supply in Loss preceded a strong price rebound.

Given that Chainlink remains a crucial infrastructure component with strong utility in the blockchain ecosystem, these signs point to a nearing bottom. Could LINK’s price soon reverse?

Final Thoughts

Despite Chainlink breaking below the $11 support zone, Spot Taker CVD remained buy-dominant.
Total Supply in Loss climbed toward 400 million LINK, placing a large share of holders underwater.

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Пов'язані питання

QWhat was the key support zone that Chainlink broke during the sell-off, and why was it significant?

AThe key support zone was $10.6–$11.75. It was significant because it had held since mid-November 2025 and aligned with key Fibonacci Retracement levels.

QWhat on-chain metric suggested persistent buying pressure for LINK despite the price drop?

AThe Taker Buy Dominant metric from CryptoQuant stayed elevated, reflecting relentless buying pressure and suggesting institutional investors saw LINK as undervalued.

QAccording to the liquidation heatmaps, which price zone had dense liquidity clusters that could influence a potential rebound?

ACoinGlass Liquidation Heatmaps highlighted dense liquidity clusters between $12 and $13, where price repeatedly interacted before stabilizing.

QWhat does a surge in the 'Total Supply in Loss' metric historically indicate for the market, according to the article?

AHistorically, spikes in the 'Total Supply in Loss' metric have been precursors to market bottoms and subsequent recoveries, as seen during the 2022 downturn.

QWhat broader market event amplified the selling pressure on altcoins like Chainlink?

AThe broader market drawdown, where Bitcoin fell below $85,000, amplified risk-off pressure across altcoins.

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