Chainlink in June 2025: Will the $12.3 Support Hold?

Chainlink faces selling pressure and oracle glitch issues, but DeFi growth and ETFs offer hope.

On June 2, 2025, Chainlink (LINK) is trading around $12.4, down 5.12% in the past 24 hours. This price drop has been exacerbated by a late-May oracle glitch that caused $532,000 in DeFi protocol losses. Additionally, macroeconomic pressures, such as global trade tensions and tight Federal Reserve policies, have impacted the crypto market. However, Chainlink’s DeFi growth and ETF applications provide a positive mid-term outlook. Technical analysis shows LINK holding key support between $12.3 and $12.5. A break below this could push prices to $8 or even $6.5. Conversely, resistance at $14, if broken, could drive LINK to $17.4. Daily charts display a descending channel pattern, and the Relative Strength Index (RSI) at 35 suggests oversold conditions, potentially signaling an imminent reversal. As a leader in decentralized oracles, Chainlink plays a critical role in the DeFi ecosystem. Its Total Value Secured (TVS) has reached $66 billion, reflecting widespread trust in the network. However, the recent oracle glitch, which delayed price updates by 25 minutes, has shaken some investor confidence. Daily active addresses have dropped to 1.2 million from a March 2025 peak of 1.5 million, indicating reduced network activity. ETF applications from institutions like Grayscale and BlackRock, seeking to launch LINK-based products, have drawn institutional interest. The estimated 60% chance of SEC approval for a spot Chainlink ETF could drive significant capital inflows. Additionally, the integration of Chainlink’s CCIP protocol with Solana in May 2025 has bolstered network adoption in cross-chain ecosystems. Whale activity is notable, with large transaction volumes surging 299% to 6.71 million LINK in late May. This could indicate accumulation or distribution, but occasional whale sales have fueled short-term volatility. Rumors of a new partnership with a traditional financial institution, like SWIFT, could further boost network confidence. Given these dynamics, Chainlink faces short-term challenges due to the oracle glitch and economic pressures. However, mid-term prospects are bullish, driven by DeFi growth, ETFs, and new integrations. Investors should monitor key support and resistance levels and macroeconomic developments. Ultimately, Chainlink’s pivotal role in DeFi and TradFi integrations makes it a key crypto project. However, regulatory risks and competition from other oracle networks could pose long-term challenges.