Chainlink (LINK) Plummets 99.91% Amid Technical Selloff Despite Short-Term Gains

On May 29, 2025, Chainlink’s native token, LINK, experienced extreme volatility, dropping 99.91% within 24 hours to $15.925. Over a week, the token rebounded with a 252.18% surge, while monthly gains reached 908.15%. Despite these shorter-term gains, LINK’s value declined 2,038.66% year-to-date.

24-Hour Plunge Highlights Liquidity Challenges

The token’s dramatic intraday decline appears tied to algorithmic trading and liquidity shortages. Analysts noted that a single large sell order may have triggered automated sell mechanisms, amplifying price pressure. Exchange data indicated reduced trading depth in LINK’s order books, exacerbating the drop. This contrasts with its shorter-term resilience, as the token’s weekly and monthly gains reflect speculative buying amid rumors of ecosystem upgrades.

Short-Term Gains vs. Persistent Bearish Trend

While LINK’s 252.18% weekly rise and 908.15% monthly gain suggest renewed interest, these figures are dwarfed by its 2,038.66% annual decline. The token’s 2025 performance underscores broader market skepticism toward decentralized finance (DeFi) assets, despite periodic rallies fueled by technical rebounds.

Market Instability Dominates Outlook

Analysts project further volatility for LINK, citing thin liquidity and speculative investor behavior. “The token’s price swings reflect its status as a high-risk asset,” one analyst stated. “Without sustained institutional interest or tangible protocol growth, volatility will remain the norm.”

The token’s 24-hour drop to $15.925 marks its lowest level since mid-2023, though its shorter-term gains suggest pockets of trader optimism. Market participants remain divided on whether the token can stabilize amid ongoing macroeconomic uncertainty.

Chainlink’s developers have not publicly commented on the price movements.