Chainlink (LINK) is navigating a narrow price corridor as it nears a significant resistance level at $15, a threshold that could determine its next major move. As of May 5, 2025, LINK trades at $13.64, marking a 3.55% drop in the past 24 hours. This price action reflects a broader pattern of volatility, liquidations, and shifting sentiment in the crypto market.
Chainlink’s Struggle Below Resistance Highlights Market Tension
Since early April, LINK has fluctuated between $13 and $15, with repeated rejections near $14.10 signaling sustained selling pressure. The asset briefly surged to $15.50 in early April before plunging below $13 on April 7, triggering $4.39 million in long liquidations. A quick reversal the next day led to a wave of short liquidations, showcasing the market’s fragile equilibrium.
Crypto analyst Ali charts identifies $15 as a crucial resistance level. A confirmed breakout above this mark could shift market momentum toward the bulls and potentially push LINK toward $17.50. Until then, traders remain cautious, watching whether the $13 support zone will hold amid renewed selling.
Liquidation Surges Underscore Uncertainty Among Traders
April’s liquidation charts paint a picture of intense indecision. On April 6–7, long liquidations spiked as LINK tumbled. A reversal on April 8 then punished short sellers. A quieter period followed until April 22–24, when short liquidations rose again, aligning with a small rally.
The most critical resistance for #Chainlink $LINK sits at $15. A breakout above this level could pave the way for higher highs. pic.twitter.com/pOGuBHY32O
— Ali (@ali_charts) May 4, 2025
The recurring liquidations—most recently $2.2 million in long positions on April 30—signal a highly reactive market where both bulls and bears are getting caught off guard. Leveraged positions remain particularly vulnerable in this choppy environment.
Whale Activity Slows as LINK Traders Adopt Caution
High-value LINK transfers have dropped sharply in early May. From a peak of $98.64 million in transactions on April 28, volume fell to $21.12 million by May 3. This decline suggests whales may be stepping back amid uncertainty, possibly awaiting a decisive price breakout or breakdown.
Despite the decline in price, trading volume jumped 23.85% in the last 24 hours. A volume-to-market cap ratio of 2.76% hints at active trading—whether due to accumulation or exits remains unclear.
As Chainlink consolidates beneath $15 resistance, all eyes are on whether bulls can muster enough strength to shift the trend. Until then, traders face a precarious market teetering between breakout and breakdown.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Chainlink (LINK) Bullish Signals Hint at Potential Surge to $16 and Beyond
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