- LINK’s bullish structure weakens as demand dips, risking a 7% drop if prices fall below the $15 support level.
- Despite breaking six-week resistance on May 8th, LINK struggled to advance, trading sideways near $15.5 since then.
Chainlink’s LINK token maintains a position above key levels, though signs point toward potential price decreases. While the overall market structure remains tilted upward, reduced buying interest creates pressure. LINK faces a possibility of dropping approximately 7% if it falls below the $15 mark.
LINK managed to surpass a resistance level that had held for six weeks on May 8th. However, the upward movement stalled quickly. Since that breakout, the price has largely stayed near that previous barrier, around $15.50. Throughout the latter part of May, LINK traded within a band, fluctuating between $14.84 and $18. It did not achieve a clear, sustained increase.
This sideways movement mirrors the broader altcoin market, which also lacked direction starting around May 10th. Separate reports indicated Chainlink continued active development work during this period.
Examining blockchain data reveals a pattern of profit-taking. Holders frequently sold LINK when prices reached the $16 to $18 area. Because the move above $15 placed many holders in a profitable position, selling became a common choice.
Concurrently, new buying interest for LINK diminished. Given these two factors – consistent selling at higher prices and weaker demand – LINK’s inability to rally higher is understandable.
ETHNews analysis of LINK’s daily price chart shows a shift. After failing to overcome resistance near $17.42 earlier in May, LINK formed a series of lower price peaks. This created a triangle pattern, characterized by those lower highs and relatively similar low points.
Supporting this, the On-Balance Volume (OBV) indicator, which tracks buying and selling pressure, has trended downward for the past three weeks. This cooling momentum is palpable.
Previous findings pointed to increased selling pressure using the Mean Coin Age metric; this pressure continues. Although technical indicators like the Stochastic RSI showed signs of being oversold and the regular RSI hovered near neutral territory, the overall market tone favors sellers.
This combination increases the likelihood of LINK retreating back into its previous trading range. A plausible target lies near the mid-point support level of $13.20.
Data tracking potential liquidations reinforces the risk near current levels. A significant cluster of liquidation points sits at $14.80, acting like a magnet for price movement. Testing this zone could trigger an LINK price decline of close to 8%.
Conversely, the price levels near the recent highs of $17.30 and above also contain substantial liquidation points. However, the present lack of strong demand makes a downward move toward the $14.80 zone seem the more probable path for LINK in the immediate future.
Chainlink (LINK) is currently trading at $15.95, reflecting a 0.4% increase over the last 24 hours and a 0.7% rise over the past 7 days. The monthly performance stands at a 6.7% gain, and the market capitalization is $10.49 billion, ranking LINK 16th in the global crypto market. With a trading volume of $318 million in the past 24 hours, LINK remains actively traded, although volume has slightly declined compared to the previous day.
Partnerships with institutions like Swift, Euroclear, and the Central Bank of Brazil have further strengthened LINK’s enterprise credibility. A recent development saw Solv Protocol integrate Chainlink’s Proof of Reserve (PoR) system, signaling increasing adoption in decentralized finance (DeFi) and tokenized assets.
Despite recent bullish momentum, LINK is trading about 69% below its all-time high of $52.70, yet remains over 10,600% up from its all-time low.
