Potential 13 Decrease on the Horizon for LINK Heres the Latest Development
Key Points
– The Long/Short ratio for LINK is at 0.82, showing a strong bearish market sentiment.
– 54.84% of top traders have short positions, while 45.16% have long positions.
– LINK could see a 13% price drop, possibly reaching $9 if it closes below $10.30.
Chainlink (LINK) is facing a potential price decline in the current uncertain cryptocurrency market sentiment. The daily time frame shows a bearish price action pattern, and its price has been decreasing along with other major cryptocurrencies.
Price Movement
At the moment, LINK is trading around $10.52, with a 2.7% decrease in the past 24 hours. The trading volume has dropped by 19%, indicating lower participation due to the bearish price action pattern.
Technical Analysis and Future Levels
Expert technical analysis reveals a bearish head-and-shoulder pattern on the daily time frame. Furthermore, the recent price drop has caused LINK to break its crucial descending trendline support, in place since August 2024.
Based on recent price momentum, if LINK breaches the neckline of the bearish pattern and closes a daily candle below $10.30, there is a strong chance of a 13% price decrease, possibly reaching $9 in the near future. LINK is currently trading below the 200 Exponential Moving Average (EMA), indicating a downtrend.
Bearish On-Chain Metrics
On-chain analytics from Coinglass show LINK’s Long/Short ratio at 0.82, indicating strong bearish market sentiment. Additionally, future open interest has increased by 5.2% in the past 24 hours, a bearish sign for LINK holders.
When the long/short ratio is below 1 and open interest rises, it suggests that traders have begun shorting. Currently, 54.84% of top traders hold short positions, while 45.16% hold long positions, indicating a shift towards short positions.
Conclusion
In conclusion, LINK is facing a bearish market sentiment as indicated by its Long/Short ratio, technical analysis, and on-chain metrics. Traders and investors should be cautious and monitor the situation closely.