Chainlink’s LINK token fell 4% on Wednesday after encountering strong technical resistance amid broader crypto market weakness.
The withdrawal came as Bitwise’s proposed Chainlink ETF was spotted on the DTCC ledger under the symbol CLNK, signaling operational readiness for a potential launch.
The development initially sent LINK higher, testing resistance near $16.25, according to CoinDesk Research’s technical analysis model. But the move sparked aggressive selling, with 3.36 million tokens traded as of 4:00 p.m. UTC, or 138% above the 24-hour average, sending LINK down to a session low of $15.10, according to CoinDesk data.
Although the DTCC listing represents a step forward for the ETF process, it does not guarantee SEC approval. Market participants largely treated the listing as a procedural step rather than a bullish catalyst, remaining focused on chart levels. The $16.15 to $16.25 area proved too strong to breach, thus strengthening it as a key overhead supply region.
Key Technical Levels Signal Limited Action
- Support/Resistance: Primary support stuck at $15.10 following the wave of institutional selling, with immediate resistance between $15.40 and $15.50 depending on recovery channel momentum.
- Volume analysis: The 24-hour activity is 9.39% higher than the weekly average, with a spike of 3.36 million shares during a breakdown of $16.25, confirming a significant overhead bid at resistance.
- Chart templates: The formation of an ascending channel from the overnight lows meets a ceiling of resistance, with current action suggesting continued trading between the $15.10 and $16.25 limits.
- Targets and risk/reward: Upside targets are at the $15.50 and $16.00 levels, with downside risk towards psychological support at $15.00 if recovery momentum stalls.
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial team for accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.
