Chainlink’s LINK Token Drops 4% as ETF Listing Sparks Volatility

Chainlink’s LINK token declined 4% on Wednesday, pressured by technical resistance and overall weakness in the crypto market. The drop followed the appearance of Bitwise’s proposed Chainlink ETF on the DTCC registry under the ticker CLNK, a signal of operational readiness that stirred brief excitement among investors.

Initially, LINK surged toward $16.25, a key resistance level identified by CoinDesk’s technical model, before heavy selling took hold. More than 3.36 million LINK tokens changed hands during the 16:00 UTC hour—138% above the 24-hour average—triggering a pullback to $15.10, according to CoinDesk data.

While the DTCC listing marks a step forward in the ETF approval process, analysts cautioned that it does not guarantee SEC approval. Traders viewed it as a procedural milestone rather than a definitive bullish signal, shifting attention back to chart dynamics. The $16.15–$16.25 zone has reaffirmed itself as a strong resistance barrier, suggesting that buyers may need stronger momentum or new catalysts to push higher.

From a technical perspective, LINK is now trading within a defined range. Support is holding near $15.10, where institutional buying previously emerged, while immediate resistance stands at $15.40–$15.50. The volume spike during the breakdown confirms significant supply at higher levels, limiting upside potential in the short term.

Chart patterns show LINK moving within an ascending channel, though the latest rejection hints at potential range-bound action between $15.10 and $16.25. Upside targets remain around $15.50 and $16.00, with downside risk toward $15.00 if recovery momentum stalls.

The combination of ETF anticipation, heightened trading activity, and resistance pressures suggests that Chainlink’s near-term outlook will likely stay volatile as traders weigh regulatory progress against technical headwinds.