LINK Price- Chainlink Traders Brace for Possible Downside Move
LINK Price– Chainlink (LINK) showed signs of weakening after a strong 22% price surge, as sellers emerged near critical resistance levels. Despite briefly reclaiming higher ground, LINK failed to surpass the 200-day Exponential Moving Average (EMA), suggesting a bearish structure and a potential price correction.
In the last 24 hours, LINK slipped by 5.25%, trading around $14.40 at the time of writing. Trading volume dropped by 11%, reflecting a decline in investor enthusiasm. On-chain analytics firm IntoTheBlock reported a 13% decrease in Daily Active Addresses, indicating reduced user engagement.
Short Positions Increase as Traders Anticipate Downside
Short interest in LINK has surged, signaling that market participants may be bracing for further downward momentum. According to CoinGlass, key liquidation zones stand at $14.25 (support) and $15.77 (resistance). If the price falls to $14.25, approximately $2.90 million in long positions could be liquidated. Conversely, a rise to $15.77 may trigger liquidations of about $15.37 million in short positions.
Data indicates that more capital is positioned against LINK than in favor, with traders seemingly confident that LINK will not break above the $15.77 resistance in the near term.
Technically, LINK faced consecutive rejections at a descending trendline and the 200-day EMA, reinforcing the outlook for a corrective phase.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
