On May 8, Chainlink (LINK) broke through a major resistance level, but the bullish momentum didn’t last. A wave of profit-taking and fading demand around key price zones caused the rally to stall.
📉 A Breakout That Led Nowhere
After breaking the six-week resistance at $15.5, LINK seemed poised for growth. However, during the second half of May, its price remained range-bound between $14.84 and $18, showing no convincing upward continuation.
On-chain data revealed that many holders chose to realize profits around the $16–18 range, especially after the price surpassed $15 — a level at which a significant number of wallets went into profit. As a result, selling pressure increased, and demand weakened.
🧭 Fading Momentum and Technical Signals
Despite high development activity on the Chainlink network, the altcoin market entered a lull after May 10, which dampened LINK’s bullish outlook.
On the daily chart, LINK formed lower highs after testing resistance at $17.42, while maintaining a consistent support level — a classic descending triangle pattern, indicating market indecision. The OBV (On-Balance Volume) has also been declining for three weeks, suggesting reduced trading volume.
Earlier analysis also pointed to selling pressure based on the average coin age metric, which continues to signal that long-term holders are exiting their positions.
🔽 LINK Could Drop Toward $13.20
Although the stochastic RSI suggests a potential bottom, overall market sentiment remains cautious. The RSI is hovering near the neutral 50 level, indicating a tug-of-war between bulls and bears.
If the bearish scenario plays out, LINK could decline to the key support at $13.20. Meanwhile, the monthly liquidation heatmap shows a heavy liquidity cluster at $14.8, acting as a potential magnet for price. A retest of this zone could lead to a 7–8% correction.
In contrast, significant liquidation levels exist above $17.3, but weak demand makes it unlikely that price will reclaim these highs in the short term.
📊 Summary:
🔹 Profit-taking took place between $16–18
🔹 Market formed a descending triangle with falling volume
🔹 Weak demand increases risk of a drop toward $13.2
🔹 7–8% correction is likely if $14.8 support breaks
#Chainlink , #LINK , #CryptoNewss , #Altcoin , #crypto
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