Chainlink fell 22% in the final days of January 2026, raising questions about the durability of its multi-month uptrend.

The sell-off decisively broke the $10.6–$11.75 support zone, a range that had held since mid-November 2025 and aligned with key Fibonacci Retracement levels.

That breakdown coincided with LINK’s Relative Strength Index (RSI) dropping to its lowest level since 2022.

The move unfolded alongside a broader market drawdown, as Bitcoin fell below $85,000, amplifying risk-off pressure across altcoins.

Even so, the decline forced traders to reassess whether the move marked capitulation or the start of a deeper correction.

Taker buying persisted despite price weakness

According to CryptoQuant data, despite Chainlink’s [LINK] sharp drop to $13 in November 2025, the Taker Buy Dominant metric stayed elevated, reflecting relentless buying pressure. That said, institutional investors saw LINK as undervalued, which fueled continued accumulation even as prices fell. 

This ongoing buying interest clearly showed that Chainlink’s potential wasn’t being overlooked.

Liquidity built near $12 as downside slows

CoinGlass Liquidation Heatmaps highlighted dense liquidity clusters between $12 and $13 during the late-January sell-off. Price repeatedly interacted with this zone before stabilizing near the lower end of the range.

A reclaim above $11 could attract liquidity-seeking flows and force short-covering, potentially opening a path back toward $13. Until then, sellers retained control of the broader trend.

Supply in loss surged toward historical extremes

According to Glassnode analysts, the total supply of LINK in loss surged to around 400 million. This spike indicates that a large portion of LINK holders are currently underwater.

Historically, spikes in this metric have been precursors to market bottoms and subsequent recoveries. 

For instance, during the 2022 market downturn, a similar surge in Total Supply in Loss preceded a strong price rebound.

Given that Chainlink remains a crucial infrastructure component with strong utility in the blockchain ecosystem, these signs point to a nearing bottom. Could LINK’s price soon reverse?

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Final Thoughts

• Despite Chainlink breaking below the $11 support zone, Spot Taker CVD remained buy-dominant.
• Total Supply in Loss climbed toward 400 million LINK, placing a large share of holders underwater.

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