Chainlink’s price continued to struggle this week, extending its four-week losing streak and falling to a crucial support level despite growing optimism around its upcoming ETF catalysts.

LINK dropped to $12, its lowest level since June and a steep 55% decline from this year’s peak.

📉 LINK Crashes Despite Strong On-Chain Fundamentals

The recent sell-off comes even as Chainlink shows improving on-chain metrics. Data from Nansen reveals that exchange balances have plunged from 300 million LINK last month to just 213 million today.

Falling exchange supply is typically bullish, signaling:

• Investors are withdrawing tokens for long-term holding
• Panic selling is limited
• Market confidence remains intact despite the price drop

Still, LINK continues to face pressure across broader crypto markets.

📈 Chainlink Reserves Keep Growing

At the same time, Chainlink’s own strategic reserves have risen to 884,674 LINK roughly $11 million worth according to the latest data from the project.

The most recent addition came on November 20, when Chainlink added 81,285 LINK to the reserves. These reserves are funded by:

• On-chain fees
• Off-chain oracle-related revenues

This growth underscores the protocol’s expanding economic activity.

🚀 ETF Buzz Builds: GLINK Could Launch Next Week

Investor sentiment could shift dramatically soon. Bloomberg’s ETF analyst Eric Balchunas said he expects Grayscale’s GLINK ETF to launch next week, which would bring institutional-level exposure to LINK for U.S. investors.

Additionally:

• A Bitwise Chainlink ETF appears to be in progress
• It was recently spotted on the Depository Trust & Clearing Corporation (DTCC) list

ETF launches often spark major price inflows, especially for widely used networks like Chainlink.

🏛️ RWA Boom Continues to Boost Chainlink

The growth of the real-world asset (RWA) tokenization industry is another bullish factor. RWA market size climbed 1.47% in the last 30 days to over $35.6 billion, according to RWA data.

As the largest oracle network powering tokenized assets, Chainlink sits at the center of this sector’s expansion and stands to benefit significantly.

📉 Chainlink Price Technical Analysis: Risk of Further Downside

Despite strong fundamentals and upcoming catalysts, LINK’s chart paints a cautious picture.

Key technical signals:

• LINK has formed a head-and-shoulders pattern on the weekly chart a bearish reversal setup
• Price is hovering near the neckline, a crucial level
• A breakdown below the neckline could push LINK down toward $10, a psychological support zone
• RSI is trending lower but has not yet reached oversold territory at 30
• LINK remains below all major moving averages
• The Supertrend indicator is firmly bearish

Invalidation level:

A move above $17.83 the May 12 high would break the bearish structure and open the door for a stronger reversal.