Altcoins News

Story: Chainlink Likely to Face Another 10% Drop in the Short-Term

By MikeT

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Chainlink (LINK) has been struggling in recent days, with its price experiencing a significant drop, signaling potential further downside in the short term.

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Price Drop and Loss of Crucial Support Level

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Chainlink’s recent price action has been bearish, with the token falling below the critical $14.85 support level.

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According to on-chain analytics firm IntoTheBlock, only 24.96% of LINK holders are currently in profit, while the vast majority, around 74.74%, are at a loss.

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Decreasing Trading Volume and Bearish Momentum

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Adding to the bearish sentiment, Chainlink's trading volume has decreased by 15% over the last 24 hours, indicating lower participation from both investors and traders compared…

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Technical analysis of Chainlink's price action also points to further downside potential. LINK had been consolidating in a range between $15.85 and $14.

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One of the key technical indicators that suggests continued bearish pressure is the 200 Exponential Moving Average (EMA).

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Another significant factor contributing to LINK’s bearish outlook is the dominance of short positions in the market.

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Over-leveraged Positions and Liquidation Risk

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The over-leveraged positions of short traders may lead to further downward pressure on LINK’s price.

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In conclusion, Chainlink is facing significant bearish pressure, with key support levels breached and a majority of investors now in the red.

The Currency Analytics

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