Chainlink (LINK) is experiencing a downturn, currently down 2% as of press time on Tuesday, which compounds an almost 5% decline observed throughout December. This trend risks marking the fourth consecutive month of negative performance for the oracle token, raising concerns about a bearish trajectory heading into 2026.
Despite these challenges, the Chainlink ecosystem is undergoing notable expansions, including a recent partnership with Coinbase and the launch of the Base-Solana bridge. In September, a partnership with Swift was also established. However, this positive development is overshadowed by a broader bearish sentiment in the cryptocurrency market. Prominent figures in the industry, such as Cardano founder Charles Hoskinson, have gravitated toward alternatives like the Pyth Network over Chainlink, adding to the platform’s woes.
The partnership with Coinbase, announced on December 11, aims to enhance cross-chain interoperability through the Cross-Chain Interoperability Protocol (CCIP). This collaboration is focused on boosting the growth of Base-wrapped assets, including cbBTC, cbETH, cbDOGE, cbLTC, cbADA, and cbXRP. Josh Leavitt, Senior Director of Product Management at Coinbase, highlighted Chainlink’s industry leadership in cross-chain connectivity as a key reason for this collaboration.
Additionally, Chainlink’s prior partnership with Swift, which is an ISO20022-certified global payments system, seeks to create a system for executing blockchain transactions using Swift messages. This partnership aims to enable banks to uphold their Swift-based backends while exploring tokenized assets with quicker settlement and improved cross-chain functionality.
Despite the challenges in the market, institutional confidence in Chainlink remains robust. Grayscale’s LINK-focused Exchange Traded Fund (ETF) has seen considerable inflows, totaling $58.28 million in December thus far, including $1.99 million recorded just yesterday after two days of minimal activity. Meanwhile, the Chainlink Reserve, sustained by the platform’s revenue, has amassed 1.23 million LINK tokens at an average price of $17.78.
On the network side, Chainlink’s Transaction Value Enabled (TVE) stands at an impressive $27.47 trillion, while the Total Value Secured (TVS) has seen an uptick to $78.29 billion, up from $76.87 billion in November, suggesting a steady demand for Chainlink’s oracle services. Nevertheless, competition remains fierce, as noted by Hoskinson’s remarks favoring Pyth Network for its cost-effective oracle services featuring institutional-grade capabilities.
Currently trading around $12, Chainlink faces potential further declines if it breaches the November low of $11.61. The pressure of a fourth month of decline is threatening to push LINK below a support trendline connecting past lows, with pivotal points at $10.94 and ultimately risking a plunge towards $5.55, near its annual low of $4.76. Technical indicators paint a concerning picture, showing a decline in buying pressure as the Relative Strength Index (RSI) hovers at 46, and the Moving Average Convergence Divergence (MACD) signals renewed bearish momentum.
Should LINK manage a rebound from the $11.61 level, there exists the possibility of testing the $20 mark, but many remain wary of the prevailing market conditions.
