link

Chainlink (LINK) is showing increasing signs of weakness as price action continues to deteriorate, raising concerns that the current downtrend could extend into early 2026. As of Tuesday, LINK is down roughly 2% on the day, extending its monthly decline to nearly 5% since the start of December. If this trajectory holds, Chainlink is on track to record its fourth consecutive monthly loss, a historically bearish signal that often precedes a weak start to the following year.
What makes this decline particularly notable is that LINK’s price weakness appears largely disconnected from the project’s ongoing ecosystem expansion. In December alone, Chainlink announced a strategic partnership with Coinbase, the launch of the Base–Solana bridge, and continued to build on its landmark collaboration with SWIFT, signed earlier in September. Despite these developments, market sentiment around LINK remains fragile.
At the same time, institutional and internal confidence has not disappeared. Net inflows into LINK-focused ETFs have remained positive, while Chainlink’s ecosystem reserve has continued accumulating tokens, now holding over 1.23 million LINK. These dynamics suggest a growing disconnect between fundamentals and short-term price action.
Chainlink Enables Interoperability Between Coinbase and Solana
On December 11, Chainlink officially announced its partnership with Coinbase, providing cross-chain infrastructure through its Cross-Chain Interoperability Protocol (CCIP). This integration supports wrapped assets across the Base ecosystem, including cbBTC, cbETH, cbDOGE, cbLTC, cbADA, and cbXRP.
According to Josh Leavitt, Senior Director of Product Management at Coinbase, Chainlink was selected due to its leadership in secure cross-chain connectivity. He emphasized that Chainlink’s infrastructure enables Coinbase to expand its wrapped asset offerings in a reliable and institution-grade manner.
The announcement followed closely after the launch of the Base–Solana bridge, also secured by Chainlink’s CCIP, enabling seamless asset transfers between the two blockchains. This development lays the foundation for an “always-on” capital market, where value can move continuously across networks without time or infrastructure constraints.
Earlier this year, Chainlink also partnered with SWIFT, the global financial messaging network compliant with ISO 20022, to enable blockchain-based transactions via traditional banking infrastructure. This initiative allows banks to leverage existing backend systems while gradually integrating tokenized assets with enhanced cross-chain functionality.
Institutional Confidence Persists as Network Metrics Improve
Institutional interest remains visible beneath the surface. The Grayscale Chainlink Trust ETF recorded $58.28 million in net inflows so far in December, including $1.99 million on Monday alone, signaling a return of capital after two sessions of stagnation.
Meanwhile, the Chainlink Reserve, funded by protocol revenues, purchased approximately 1.23 million LINK at an average price of $17.78, reinforcing long-term confidence from within the ecosystem.
From a network perspective, Chainlink’s fundamentals continue to strengthen. Transaction Value Enabled (TVE) has climbed to $27.47 trillion, while Total Value Secured (TVS) rose to $78.29 billion, up from $76.87 billion in November. These metrics indicate steadily rising demand for Chainlink’s oracle services across DeFi, tokenization, and institutional finance.
However, competition in the oracle space is intensifying. In a recent interview, Charles Hoskinson, founder of Cardano, suggested that Pyth Network may offer a lower-cost oracle solution while still meeting institutional standards. This highlights a shifting competitive landscape that could weigh on LINK’s short-term narrative.
Technical Outlook: Risk of Deeper Correction Below $10
Technically, LINK is trading near $12, down sharply from its December 9 high of $15.01. Price is now approaching a critical long-term support trendline connecting the August 2024 and April 2025 lows, which aligns closely with Pivot S1 at $10.94.
In a bearish scenario, a decisive monthly close below the November low at $11.61 could accelerate downside momentum, exposing LINK to a retest of the August 2024 low near $8.08. Beyond that, risk extends toward Pivot S2 at $5.55, a level uncomfortably close to the 2023 bottom around $4.76.
Monthly momentum indicators reinforce the cautious outlook. The RSI has slipped to 46, falling below its neutral level, while the MACD has crossed below its signal line, signaling a renewed resurgence of selling pressure.
On the upside, a strong rebound from the $11.61 zone could stabilize price action and open the door for a recovery toward the psychologically important $20 level — though such a move would likely require broader market strength and renewed risk appetite.
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