LINK Drops 4% as Chainlink ETF News Fails to Push Break of Technical Resistance
Chainlink’s LINK token dropped by 4% after facing strong resistance amid a weak crypto market. Despite a spike in trading volume following the listing of Bitwise’s proposed Chainlink ETF (ticker: CLNK) on the DTCC registry, LINK fell from testing $16.25 resistance to a low of $15.10. The DTCC listing is a procedural step, not guaranteeing SEC approval. Key technical levels indicate range-bound trading between $15.10 and $16.25, with primary support at $15.10 and resistance near $15.40-$15.50 in recovery channels.
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LINK Token Faces Market Resistance
Chainlink’s LINK token experienced a setback, falling 4% on Wednesday due to strong technical resistance amid a broader crypto market downturn. Despite an initial surge tied to the news of a proposed ETF, the rally couldn’t sustain momentum.
Impact of Bitwise's Chainlink ETF Filing
The downward pullback followed reports that Bitwise’s proposed Chainlink ETF appeared on the DTCC registry under the ticker CLNK, indicating operational readiness for a potential launch. This news temporarily boosted LINK, pushing it to test resistance at $16.25, according to CoinDesk research. However, heavy selling activity ensued, with 3.36 million tokens traded during the 16:00 UTC hour, marking a 138% spike above the 24-hour average. LINK fell to a session low of $15.10.
ETF Listing: A Procedural Step, Not a Catalyst
While the DTCC listing marked a significant step in the ETF approval process, it does not guarantee SEC approval. Market participants viewed the development as a procedural milestone rather than a meaningful bullish signal. The $16.15–$16.25 zone served as strong resistance, underscoring it as a key supply region.
Key Technical Levels and Trading Activity
Support/Resistance Levels:
- Primary support was observed at $15.10, influenced by institutional selling pressure.
- Immediate resistance lies between $15.40–$15.50, according to recovery channel assessments.
Volume Insights:
- 24-hour trading volume was 9.39% above the weekly average, with a significant volume spike confirming heavy overhead supply at the $16.25 resistance level.
Chart Patterns and Market Outlook
An ascending channel formation emerged from overnight lows, but it encountered a resistance ceiling. Current trading action suggests that LINK may continue range-trading between $15.10 and $16.25.
Targets and Risks:
- Upside targets are identified at $15.50 and $16.00.
- Downside risk remains toward $15.00, a key psychological support level, if recovery momentum fails.
Disclaimer
Parts of this article were generated with assistance from AI tools and reviewed by the editorial team to ensure accuracy and maintain editorial standards. For more information, see CoinDesk's full AI Policy.