Chainlink mirrored a significant downturn that impacted the entire cryptocurrency market on February 5, 2026, as the price of LINK reached multi-year lows reminiscent of values observed in October 2023. This decline brought the altcoin’s price to critical levels around $8, which had previously served as a crucial resistance point during the extensive crypto bear market spanning from 2022 to 2023. On the same day, leading cryptocurrency Bitcoin also experienced a notable decrease, further contributing to the market’s downward trend.
Initially, LINK was trading above $9.42 but saw a swift decline to test lows around $8.40 during intraday trading. As of now, although prices have stabilized at these new lows, LINK remains down nearly 9% over the last 24 hours and has seen a decrease exceeding 23% over the past week. Trading volumes surged by 31%, surpassing $1.4 billion, emphasizing the heightened selling pressure. This environment has also led to a significant reduction in open interest, which fell from $700 million in early January to approximately $460 million currently. For context, open interest was as high as $1.9 billion in August when LINK prices were around $26.
This recent decline aligns closely with a sharp drop in Bitcoin, which at one point dipped to $67,800. The simultaneous downturn across multiple cryptocurrencies reveals an overarching sector-wide pressure amplified by macroeconomic concerns and fear-induced selling. However, some market analysts believe a buying opportunity may present itself amidst the chaos. Economist Mohamed El-Erian commented on social media platform X, highlighting the intensifying sense of forced selling and questioning when buyers might step in to take advantage of assets being undervalued due to these pressures. He emphasized the importance of identifying fundamentally sound assets that are temporarily affected by market conditions.
From a technical standpoint, Chainlink’s immediate resistance is now pegged at $8.80, the prior daily low, while a critical support level is established at $8.00. Despite these identified thresholds, bullish efforts might face challenges due to Bitcoin’s recent plunge below the $70,000 mark. The Relative Strength Index (RSI) indicates it remains deeply in oversold territory yet shows no divergence, suggesting a continuation of current trends. This sentiment is echoed by the Moving Average Convergence Divergence (MACD), which indicates a strengthening of bearish momentum.
If LINK were to break down further below $7.80, it could open the door for sellers targeting the next support level at $6.20, with bearish scenarios potentially dragging prices down to $5. Following a sustained period of downward movement, historical trends suggest that a bullish reversal could emerge. The RSI’s position in the oversold territory, coupled with signs of a market-wide rebound, indicates that a bottom may form in the $8-$5 range. Should this occur, buyers would likely set their sights on targets around $9.50 and $11.60. On the daily chart, significant resistance aligns with the 200-day exponential moving average (EMA), currently sitting at $15, while Fibonacci retracements from recent highs suggest that the critical 61.8% retracement level stands at approximately $15.48.
