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Chainlink Price Analysis: Can Institutional Demand Save LINK From Further Selloff?

Chainlink Price Analysis: Can Institutional Demand Save LINK From Further Selloff?

CoinpediaCoinpedia2026/01/13 01:30
By:Coinpedia
Story Highlights
  • Chainlink price has been retesting a crucial support level in the past few weeks.

  • Bitwise is preparing to launch its spot LINK ETF following its recent approval.

  • The Chainlink network will remain a major lifeline for DeFi and RWA tokenization in 2026.

Chainlink (LINK) price has signaled a midterm bullish outlook in 2026. The mid-cap altcoin, with a fully diluted valuation of about $9.4 billion, has been forming a potential reversal pattern in the past two months.

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Chainlink Price Eyes Market Reversal

In the weekly timeframe, LINK price has been retesting a crucial logarithmic support level that was established in the last two years. After experiencing heightened selling pressure during the second half of 2025, the LINK price has been forming a potential reversal pattern in the past few weeks.

Chainlink Price Analysis: Can Institutional Demand Save LINK From Further Selloff? image 0

Source: TradingView

Notably, the weekly MACD indicator shows a slowing selling pressure, as the Relative Strength Index (RSI) hovers in oversold levels.

Main Reason To Bet on Bullish Outlook for LINK in 2026

Technical tailwinds

From a technical analysis standpoint, LINK price in the daily timeframe has signaled a market reversal. The altcoin has already formed a potential double bottom after a breakout from its falling logarithmic trend.

Chainlink Price Analysis: Can Institutional Demand Save LINK From Further Selloff? image 1

Source:

Rising Institutional Demand 

The midterm outlook for LINK remains bullish backed by the rising demand from institutional investors. As , Bitwise Investment is seeking to launch its spot LINK ETF in the United States possibly in the coming weeks.

The Bitwise Chainlink ETF (CLNK) will offer institutional investors a regulated channel to invest in LINK. 

COMING SOON: Bitwise Chainlink ETF (ticker: $CLNK)

— Bitwise (@BitwiseInvest)

Network growth via Regulated means

The Chainlink network has grown to an important factor in the mainstream adoption of decentralized financial (DeFi) and Real-World Assets (RWA) tokenization. Already, top Wall Street firms – led by Swift, BNY Mellon, ANZ Bank, Citi, and BNP Paribas – have adopted Chainlink products such as the crypto price oracles, automated compliance engines, and proof of reserves. 

As such, the demand for LINK is well-positioned to grow exponentially in 2026, thus bolstering the midterm bullish outlook.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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