- Chainlink transactions have plunged 92.6%, while LINK continues to hold above key support despite weaker network activity.
- Rising accumulation and bullish indicators could help LINK defend $8.69, although a drop toward $8.10 remains possible.
Chainlink (LINK) is showing mixed signals as its price holds firm despite a sharp drop in network activity. LINK gained 3.36% over the past 24 hours, but declining transactions and users could create pressure on the price.
Chainlink Network Activity Drops Sharply
Chainlink’s on-chain activity has weakened significantly in recent days. Data from Artemis shows a steep decline in both transaction activity and network users.
Chainlink transactions fell from around 5.2 million to 386,600. This represents a 92.6% drop and marks the lowest transaction count recorded so far this year.
User activity also declined during the same period. The number of users dropped from about 2,700 to 1,000.
Such a decline could raise concerns about demand for LINK. Lower network activity can reduce the underlying demand for the asset if the weakness continues.
However, LINK has remained relatively strong despite the drop in network activity.
LINK Bulls Continue to Support the Price
Despite the weaker on-chain data, several technical indicators still favor buyers.
The Accumulation/Distribution indicator shows that buying has been building for several weeks. It has now reached its highest level since May 12.
This suggests that market participants continue to accumulate LINK despite the recent concerns surrounding network activity.
The Parabolic SAR also supports the bullish outlook. Its dots remain below the LINK price, indicating that buyers still have control of the current trend.
However, the $8.69 level remains important for LINK. The price needs to stay above this area to preserve the current bullish structure.
LINK previously faced rejection around this level during two attempts to move higher. A sustained break above $8.69 could therefore strengthen the recovery.
Could LINK Drop Toward $8.10?
LINK still faces a downside risk despite the positive technical signals.
Data from CoinGlass shows a significant liquidity cluster around $8.10. Liquidity zones can attract price as traders’ positions are triggered or filled.
A move toward $8.10 would not necessarily end the broader recovery. Instead, it could act as a retracement before another attempt to move higher.
Still, the sharp decline in Chainlink transactions and users remains a warning sign. If network activity continues to weaken, LINK could struggle to maintain its current strength.
For now, traders are likely to watch the $8.69 resistance and $8.10 support zones closely. Holding above $8.69 would keep the bullish setup intact, while a move toward $8.10 could signal a deeper short-term pullback.
Chainlink transactions have plunged 92.6%, raising concerns about weakening network activity. However, rising accumulation and bullish technical indicators could help LINK defend $8.69 and attempt another move higher.
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