Chainlink’s LINK token fell 4% on Wednesday after encountering strong technical resistance amid broader crypto market weakness.
The pullback came as Bitwise’s proposed Chainlink ETF was spotted on the DTCC registry under the symbol CLNK, indicating that it is poised for a potential launch.
The development initially sent LINK higher, testing resistance near $16.25, according to CoinDesk’s research technical analysis model. But the move triggered aggressive selling, with 3.36 million tokens traded during the 16:00 UTC time, 138% above the 24-hour average, sending LINK to a session low of $15.10, according to data from CoinDesk.
While DTCC’s listing represents a step forward for the ETF process, it does not guarantee SEC approval. Market participants largely treated the listing as a procedural milestone rather than a bullish catalyst, keeping their focus on chart levels. The $16.15 to $16.25 zone proved too strong to break, reinforcing it as a key overall supply region.
Key technical levels indicate a stock within a limited range
- Support/Resistance: Primary support locked at $15.10 by the institutional sell-off, with immediate resistance between $15.40 and $15.50 depending on the dynamics of the recovery channel.
- Volume analysis: The 24-hour activity is 9.39% above the weekly average, with an increase of 3.36 million shares during a breakout of $16.25 confirming a large overall supply at the resistance.
- Chart Patterns: The formation of ascending channels from the overnight lows finds a ceiling of resistance, and the current action suggests continued range trading between the $15.10 and $16.25 boundaries.
- Objectives and risk/reward: Bullish targets are at the $15.50 and $16.00 levels, with a risk of a decline towards the psychological support at $15.00 if the recovery momentum stops.
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and reviewed by our editorial team to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI Policy.
