Chainlink Sees a Significant Price Decline
The cryptocurrency market has seen another sharp sell-off, with Chainlink (LINK) hitting multi-year lows last observed in October 2023. The altcoin has dropped to a critical support level of $8, which previously acted as a major resistance point during the 2022-2023 crypto downturn.
On February 5, 2026, LINK hovered at $9.42 earlier in the day but quickly dropped to $8.40 intraday. The cryptocurrency is now down almost 9% in the last 24 hours and over 23% in the previous week. This drop mirrors the overall market pressure as Bitcoin also experienced a sharp decline, putting additional selling pressure on altcoins.
What’s Behind the Fall?
The decrease in Chainlink’s price is driven by macroeconomic concerns and a market-wide sell-off. Trading volumes for LINK surged by 31% to $1.4 billion, emphasizing the heightened pressure. Additionally, open interest (OI) has shrunk from $700 million in January to $460 million currently, marking a significant decrease from $1.9 billion OI in August 2023 when LINK traded around $26.
Economist Mohamed El-Erian weighed in on the situation, emphasizing the phenomenon of “forced selling” in the crypto market. He expressed optimism that buyers would eventually enter to capitalize on undervalued assets. For Chainlink, the current key resistance level is $8.80, and the immediate support zone stands at $8.
Are There Opportunities for Buyers?
The market’s oversold conditions may present a potential buying opportunity for investors. Indicators such as the Relative Strength Index (RSI) suggest that Chainlink is in oversold territory, signaling a possible bounce-back. Similarly, the Moving Average Convergence Divergence (MACD) points to strengthening bearish momentum but leaves room for a bullish reversal.
If LINK’s price stabilizes around $8-$5, it could set the stage for a recovery. Potential upside targets include $9.50 and $11.60, with a long-term resistance zone near the 200-day exponential moving average (EMA) at $15. Fibonacci retracement analysis also places key resistance at $15.48, suggesting multiple levels for investors to watch.
How to Invest in LINK
If you’re considering buying Chainlink during this dip, it’s crucial to use reliable and secure trading platforms. One popular option is Coinbase, known for its user-friendly interface and robust security measures. Consider starting with a small amount and diversifying your portfolio to mitigate risk.
Conclusion
The current slump in LINK’s price may not last forever, and savvy investors could find this a strategic entry point. With RSI levels signaling potential overselling and broader market stabilization in sight, Chainlink may have a chance to rebound. However, always research thoroughly and consult financial advisors before making investment decisions.
