Chainlink slips below $11 after 22% sell-off – Can LINK bulls defend THIS zone?

Chainlink fell 22% within the ultimate days of January 2026, elevating questions in regards to the sturdiness of its multi-month uptrend.

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

Supply: TradingView

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

The transfer unfolded alongside a broader market drawdown, as Bitcoin fell beneath $85,000, amplifying risk-off strain throughout altcoins.

Even so, the decline pressured merchants to reassess whether or not the transfer marked capitulation or the beginning of a deeper correction.

Taker shopping for persevered regardless of value weak spot

In accordance with CryptoQuant information, regardless of Chainlink’s [LINK] sharp drop to $13 in November 2025, the Taker Purchase Dominant metric stayed elevated, reflecting relentless shopping for strain. That mentioned, institutional traders noticed LINK as undervalued, which fueled continued accumulation whilst costs fell. 

Supply: CryptoQuant

This ongoing shopping for curiosity clearly confirmed that Chainlink’s potential wasn’t being missed.

Liquidity constructed close to $12 as draw back slows

CoinGlass Liquidation Heatmaps highlighted dense liquidity clusters between $12 and $13 through the late-January sell-off. Value repeatedly interacted with this zone earlier than stabilizing close to the decrease finish of the vary.

Supply: CoinGlass

A reclaim above $11 might entice liquidity-seeking flows and drive short-covering, doubtlessly opening a path again towards $13. Till then, sellers retained management of the broader development.

Provide in loss surged towards historic extremes

In accordance with Glassnode analysts, the whole provide of LINK in loss surged to round 400 million. This spike signifies that a big portion of LINK holders are at present underwater.

Traditionally, spikes on this metric have been precursors to market bottoms and subsequent recoveries. 

Supply: Glassnode

For example, through the 2022 market downturn, an analogous surge in Complete Provide in Loss preceded a robust value rebound.

Provided that Chainlink stays an important infrastructure part with sturdy utility within the blockchain ecosystem, these indicators level to a nearing backside. May LINK’s value quickly reverse?

Ultimate Ideas

• Regardless of Chainlink breaking beneath the $11 assist zone, Spot Taker CVD remained buy-dominant.
• Complete Provide in Loss climbed towards 400 million LINK, inserting a big share of holders underwater.