Chainlink Drops Below $16.86 for the First Time Since August as Analyst Identified Buy Zone Setting Up Market Rally

Chainlink (LINK) is gaining spotlight following its continued market slump. LINK has dropped by over 6.7% over the last seven days and is now trading around $16.68. Some traders are viewing this downturn as an opportunity to re-enter the market. Prominent crypto trader Ali Martinez today identified $14 as a potential buy zone, which could set up an uptrend for up to $50.

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Why Chainlink Is Struggling

Of late, LINK, the native token of the oracle network Chainlink, has been facing intense downtrend pressure. According to on-chain metrics, LINK, whose price currently stands at $16.68, has been down 7% and 30% over the past week and month, respectively.

The cause of the pullback is due to increased selling pressure that continues to overpower buying activity. Despite on-chain data showing steady institutional (whale) interest in Chainlink, the current downtrend indicates that sellers are taking advantage of recent price surges to book profits, hence overwhelming buyers.  

On Thursday, October 16, 2025, Caliber Corporation (CWD), a publicly traded real estate investment firm, announced an additional purchase of 94,903 LINK tokens valued at $2 million as part of its balance sheet reserves. With the addition, the Scottsdale-based real estate and investment company currently holds a total of 562,535 LINK tokens worth $9.2 million under its digital asset treasury strategy.

Despite the company’s token accumulation, which shows institutional bullishness in the Chainlink market, heightened selling pressure continues to overwhelm Chainlink’s momentum. With on-chain signals showing that $16.68 is LINK’s lowest price since August 8, 2025, Ali believes that the price is returning to a zone where buyers in the past have shown interest. The market analyst marked the $14 as a potential “strong buy-the-dip zone” that could propel the token upward.

LINK Entering Historical Buy Zone

Chainlink is currently trading at a crucial support level as bears try to pull it down to fresh lows. The wider crypto market remains under pressure following the renewed escalation of tariff trade tensions between the US and China late last week.

LINK’s price plunge is part of the ongoing corrections being noticed in the broader cryptocurrency market. AIi Martinez believes that Chainlink is about to enter a historical buy zone that is likely to attract massive investor accumulation of the asset. According to him, historically best buying opportunities emerge when the price falls below the lower MVRV price band – a level that indicates low pricing (undervaluation). LINK appears to be entering that zone. Triggered by recent economic turmoil, Chainlink seems to be entering a period of accumulation, with long-term buyers seeking to capitalize on market dips.