Chainlink LINK Price Drops 5% After Coinbase Bridge News, But Analysts See Potential Reversal

The price of Chainlink's LINK token experienced a 5% decline following the announcement of a strategic integration with Coinbase's new cross-chain protocol, Base. Despite the bearish short-term price action, market analysts are pointing to emerging technical indicators that suggest the sell-off may be nearing exhaustion and a potential bottom could be forming. The partnership aims to enhance secure interoperability for developers, a fundamental long-term positive for the Chainlink ecosystem. This price dip appears to be a classic "sell the news" event, where traders capitalize on the announcement for short-term profit-taking, overshadowing the deal's substantive utility. On-chain data reveals increased accumulation by large holders during the dip, while key momentum oscillators on lower timeframes show early signs of bullish divergence, hinting at weakening downward pressure. The market is now closely watching critical support levels to confirm if a genuine trend reversal is underway for LINK.