Key Takeaways:
- LINK faces a critical barrier between $14.93–$15.37, where large clusters of underwater holders may sell.
- A -49.85% drop in the Price–DAA divergence indicates weakening user participation.
- Technical indicators like CMF and Bollinger Bands suggest potential dips to $12.05 or lower without renewed demand.
Chainlink (LINK) is showing signs of weakness after a near 5% price decline in the past 24 hours, dipping to around $13.30 at press time. The altcoin, once expected to break above $15 and rally further, is instead facing stiff resistance and weakening network activity.
Technical Resistance Builds Around $15
According to on-chain data from IntoTheBlock, Chainlink is encountering a critical resistance zone between $14.93 and $15.37. Over 21,000 wallet addresses hold nearly 94.3 million LINK tokens at these levels—many of them at a loss.
This creates a significant selling wall as holders may offload tokens to break even, making upward momentum difficult. Without a strong catalyst or renewed buying interest, LINK is unlikely to breach this zone in the near term.
Network Activity Declines Sharply
Further adding to the bearish case is the declining network participation. Data from Santiment reveals that the Price–Daily Active Addresses (DAA) divergence has plummeted to -49.85%.
This negative divergence means that Chainlink’s price is not being supported by user activity on the network. In healthy markets, active user growth typically supports sustained rallies, but LINK’s drop in engagement signals potential exhaustion among investors and users alike.
Technical Indicators Signal More Downside
On the technical chart, Chainlink appears to be consolidating, but several indicators hint at further downside. The Chaikin Money Flow (CMF) has slipped below the zero line, indicating growing selling pressure.
At the same time, the Bollinger Bands remain wide, suggesting that LINK’s price may continue to trend without a strong breakout. If the current momentum persists, LINK could fall below the $12.74 support and possibly retest $12.05 or even $11 in the coming days.
While the current outlook appears bearish, a shift in the CMF back above the zero line could revive bullish sentiment. In that case, LINK might regain momentum and retest the $15.67 resistance before aiming for the $20 mark.
However, unless on-chain activity improves and technical indicators flip bullish, Chainlink’s path forward may remain constrained.
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) Price Jumps 13% but On-Chain Data Warns of Imminent Sell-Off
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