Chainlink (LINK) is under heavy pressure at the start of December, with sellers regaining full control despite anticipation surrounding the first-ever Chainlink spot ETF.
- LINK drops near $12 after major support breaks.
- Technical indicators remain firmly bearish.
- Analysts warn of possible decline toward $9–$8 if support fails.
The token slid to the $12.10 region after a sharp intraday drop, erasing nearly 7% in 24 hours and extending its weekly decline to more than 2.5%. The sell-off has pushed LINK to its lowest point since mid-October, raising fears of a deeper correction.
Technical Breakdown Accelerates After $12.30 Support Collapse
The price decline accompanies clear weakness on multiple technical fronts. On the 4-hour chart, LINK has broken below its support floor near $12.30, triggering a spike in liquidation pressure. The RSI is deep in bearish territory at 29, signaling oversold momentum instead of trend reversal confidence. Meanwhile, the MACD histogram continues to widen negatively, reflecting accelerating downside velocity rather than stabilization.
While some traders hoped the announcement of the first Chainlink spot ETF — reportedly launching this week via Grayscale — would solidify investor sentiment, momentum has moved in the opposite direction. Market reaction suggests the ETF narrative may already be priced in, or that broader risk sentiment is overshadowing the milestone.
Analysts Warn of Potential Drop Toward $8
The technical outlook shared by crypto analyst Ali only intensifies concerns. According to his chartwork, LINK may be retesting a breakdown zone before heading substantially lower. His projected downside zone stretches into the $8 range, implying that the ongoing decline may represent the early stages of a larger bearish wave rather than a temporary flush.
Market-wide indicators echo the caution. Chainlink’s technical analysis panel shows a firm “Sell” signal on TradingView’s daily timeframe. Oscillators remain mostly neutral, but moving averages have flipped to a unanimous strong sell, with 14 out of 15 showing bearish momentum. The structure suggests that buyers have yet to mount meaningful defense.
What Happens if LINK Loses the Next Support?
From a market-cap perspective, LINK still holds its position among the top 20 cryptocurrencies with an $8.4 billion valuation. However, trading volume above $620 million in the last 24 hours reflects intense speculative repositioning rather than accumulation — a signal that volatility is unlikely to calm in the short term.
With support levels broken and sentiment deteriorating, all eyes now turn to the $11.50–$11.70 zone — the final band before the market risks a deeper capitulation. If bulls fail to hold that region, analyst predictions of a move toward $9 and possibly $8 could materialize sooner than many expect.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/market/chainlink-price-outlook-etf-hype-fades-as-sellers-dominate-the-market/
