Chainlink's Reserve Buys Amid Whale Selloff, Price Lags

Chainlink's native token, LINK, fell 4% to $21.87 on October 9, 2025, amid heightened selling pressure and a broader crypto market downturn. The decline followed a critical technical breakdown, with trading volumes surging to nearly 2 million units as institutional investors offloaded positions. Despite the Chainlink Reserve's continued accumulation-purchasing 45,729 LINK in its latest weekly buy-prices remained below the reserve's average cost basis of $22.44, leaving the vehicle underwater.

The selloff coincided with bearish technical indicators, including resistance levels at $22.68 and $21.92, and a 5% intraday volatility range between $21.53 and $22.68. Analysts attributed the decline to a combination of whale activity and broader market weakness. Over 610,000 LINK tokens were moved to exchanges by whales in the past 24 hours, signaling increased distribution pressure. Additionally, the MVRV ratio-a measure of trader profitability-showed an average loss of 16% for recent buyers, aligning with historical selling fatigue levels.

Chainlink's strategic reserve, now holding 417,461 LINK valued at $9.3 million, continued to signal institutional confidence. However, market action lagged fundamentals, with the token trading below its year-to-date high of $27. On-chain metrics, including declining exchange reserves and rising whale accumulation, suggested underlying strength, though short-term volatility persisted. The Cross-Chain Interoperability Protocol (CCIP) also saw growing adoption, with 18 new integrations in recent weeks, including partnerships with ApeChain, Avalanche, and BNB Chain.

Technical analysis highlighted a critical juncture for LINK. The RSI dipped to 45.77, avoiding overbought extremes, while the MACD showed early bullish divergence despite remaining negative. A break above $23.73-a key resistance level-could trigger a test of the $25.41 target, per CoinCodex projections. Conversely, a drop below $19.82 support could extend losses to $19.32, aligning with bearish predictions from Changelly.

Market observers noted that LINK's trajectory remained tied to broader crypto trends. The CoinDesk 20 Index mirrored LINK's 4% decline, underscoring systemic weakness. However, bullish catalysts loomed, including potential ETF approvals. Grayscale and Bitwise had submitted applications, with institutional inflows expected to mirror Bitcoin's rally if approved. Analysts also highlighted the reserve's role in stabilizing the token, with no withdrawals anticipated for years.

Chainlink's ecosystem expansion, including ISO 27001 and SOC 2 certifications for its services, reinforced long-term adoption prospects. While short-term uncertainty persisted, the confluence of on-chain strength, institutional demand, and strategic reserve growth positioned LINK for a potential breakout.

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[2] Chainlink's (LINK) Technical Analysis Points to Parabolic Rally in ... (https://www.ccn.com/analysis/crypto/chainlink-technical-analysis-parabolic/)

[4] LINK Price Prediction: Chainlink Eyes $25.41 Target Amid Mixed ... (https://blockchain.news/news/20251009-price-prediction-target-forecast-link-chainlink-eyes-2541-amid-mixed-signals)

[5] Chainlink LINK Price Falls Another 16%: How Further ... (https://watcher.guru/news/chainlink-link-price-falls-another-16-how-further-can-it-drop)

[6] Chainlink's LINK Tumbles 4% as Selling Pressure Mounts (https://www.coindesk.com/markets/2025/10/09/chainlink-s-link-tumbles-4-as-selling-pressure-mounts)

[7] Chainlink Price Climbs as Strategic Reserve Hits $9.3M, ETF (https://coinpedia.org/price-analysis/chainlink-price-climbs-as-strategic-reserve-hits-9-3m-etf-hopes-build/)

[8] Chainlink Hits 8-Month Address Peak as Reserves Grow (https://www.coingabbar.com/en/crypto-currency-news/chainlink-addresses-peak-reserves-expand)

[9] Chainlink Reserve Adds $1M in Latest LINK Inflow - UPay Blog (https://blog.upay.best/chainlink-reserve-adds-1m-in-latest-link-inflow/)

[10] Chainlink Price Analysis: Key Resistance Levels and Bullish ... (https://thecurrencyanalytics.com/altcoins/chainlink-price-analysis-key-resistance-levels-and-bullish-outlook-for-link-172442)