Chainlink (LINK) fell about 5% in the last 24 hours, dropping to about $14.05. The pullback comes even after two major developments that many had hoped would ignite long-term interest: the debut of LINK’s first U.S.-listed ETF and the launch of a new cross-chain bridge linking Base and Solana secured by Chainlink’s technology.
Post-Launch Profit Taking
On December 4, the Base – Solana bridge went live on mainnet. The bridge is secured by Chainlink’s cross-chain system (CCIP), allowing assets from Solana like SOL and SPL tokens, to move directly to Base. This is seen as a big technical step, opening new routes for developers and users. The launch of the new bridge will help users to transact between two blockchains easily. Leading projects on Base, including the Zora NFT marketplace and the Aerodrome decentralised exchange, have already integrated support for Solana-based assets. This allows users on Base access to new pairs and markets, while providing Solana users with a gateway to the Ethereum ecosystem.
But even though it was a big deal, it looks like a lot of traders used it as a reason to sell. LINK had gone up about 6% in the week before the bridge launch, probably because people were guessing what would happen. But as soon as the news came out, people started selling. Reports say that LINK’s trading volume dropped sharply, which means that traders are pulling back. Chainlink has seen the “buy the rumor, sell the news” pattern before, where big updates cause short-term price rises followed by quick drops.
ETF Hype Didn’t Hold
At the same time, the first U.S. spot LINK ETF GLNK began trading on December 2. The ETF saw around $41 million of inflows on its debut day and grew to about $64 million in assets under management within 48 hours. That institutional attention had fueled optimism around LINK’s potential. Some analysts had even expected the ETF to drive LINK toward previous highs. Whales accumulated 4.73M LINK before the ETF launch, tightening supply.
Yet despite that, the broader investor sentiment seems cautious perhaps because many worry that ETF exposure may not translate immediately into higher demand for the native token. As a result, the ETF launch may have stoked initial excitement, but wasn’t enough to prevent the recent dip.
Technical Weakness
From a price-chart perspective, LINK ran into resistance around the $14.39 mark, a common pivot point, and failed to hold above it. Combined with weak volume and rising altcoin pressure, that triggered short-term bearish momentum. Analysts watching the shorter timeframes point out that key support levels, for instance, around $14.20, and further down near $13.60 could be tested if sentiment remains weak. The first level of support is $14.19, which is a Fibonacci level of 50%. A close below could test $13.59. The MACD histogram +0.317 suggests that bearish pressure is fading, but low volume makes volatility more likely. LINK is trading at about $14.05 right now, and it is slowly going down.
The total market cap of cryptocurrencies also fell by 2.1%, and altcoins did very poorly. LINK’s 24-hour turnover ratio of 5.99% shows that there isn’t much liquidity, which makes it more risky when the market goes down. The Fear & Greed Index is at 25, which is a sign of extreme fear among institutions before big economic news comes out.
Final Thoughts
The recent drop in LINK doesn’t mean there is a big problem. The Base–Solana bridge is a big step forward in technology, and the GLNK ETF shows that more institutions are interested in LINK. Both of these things make Chainlink more trustworthy and important in the long run in the larger crypto infrastructure.
But right now, what we’re seeing is short-term sentiment driven by profit-taking and broader market caution.
Also Read: Will SUI Replicate Solana’s Rally? New Report Flags Tokenomics Risks
Source: https://www.cryptonewsz.com/link-slides-as-traders-profits-ccip-etf-debut/
