- Chainlink breakout above $15.5 quickly lost momentum as holders took profits and buying pressure dried up.
- On-chain metrics and technical patterns now point to a potential drop toward $13.2.
Chainlink [LINK] long-anticipated breakout above the $15.5 resistance on 8 May brought a wave of optimism to its holders—but the celebration was short-lived. Despite breaching a six-week high, LINK has since struggled to maintain momentum, raising red flags for bullish investors.
Over the past few weeks, LINK has been range-bound between $14.84 and $18, repeatedly failing to build on its initial breakout. While Chainlink’s development activity remains high, on-chain metrics tell a different story—one that explains the token’s lackluster performance.
Also read: Cardano (ADA) Holds Key Support — Can Spot Buyers Drive a Breakout Rally to $1?
A major contributor to LINK’s stalled rally is a surge in profit-taking. On-chain data shows that many holders who bought below $15 began offloading their assets as prices hit the $16-$18 range. This wave of selling coincided with a slowdown in spot buying, effectively stalling bullish momentum.
The daily chart further supports this narrative. After a rejection at $17.42, LINK has printed lower highs, creating a triangle formation that typically precedes a breakout—or breakdown. Compounding the bearish outlook is a declining On-Balance Volume (OBV), indicating weakening buying pressure. Meanwhile, the Mean Coin Age metric continues to show signs of active distribution, not accumulation.
Technically, the RSI hovers around the neutral 50 mark, and although the Stochastic RSI hints at a short-term bounce, broader sentiment remains cautious. If the pattern holds, LINK could drop to the mid-range support at $13.2—an 8% decline from its current position.
Adding fuel to this bearish scenario is the Chainlink Liquidation Heatmap, which reveals a liquidity cluster around $14.8—a zone that could attract downward price action. In contrast, liquidation levels above $17.3 are not currently backed by sufficient demand to push the price higher.
In essence, Chainlink’s breakout fizzled not due to weak fundamentals, but because of market timing and profit-taking. Without a renewed surge in demand, LINK could be headed for a correction before any sustainable rally can take shape.
