Chainlink Price Breaks Trendline as Traders Debate Genuine Weakness

Chainlink's price has broken a trendline it had been following since early July, and traders are split on whether this is a genuine breakdown or a shakeout before another push higher.

The trendline broke down after five touches, with the fifth touch seeing sellers take over and drag price straight through it. This has left the bullish scenario in question, with the price currently sitting just below the broken trendline at $8.304.

On the other hand, building institutional flows have been quietly accumulating in the background, which adds to the tension around this level. Spot LINK ETF inflows have recorded three consecutive sessions of positive net inflows after a long stretch of near-zero activity, with daily flow data showing inflows of roughly $2.68M, then $153.91K, and then $151.81K over the past three days.

The trendline's break has been met with consistent long-side skew in liquidation activity, with leveraged buyers getting caught leaning the wrong way as sellers stepped in. A confirmed close below $8.006 would invalidate the setup and shift focus toward $7.789 and then $7.524, while a 4-hour close back above $8.764 would suggest the trendline break was a shakeout rather than a genuine breakdown.