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Key Takeaways:
- LINK traders are betting heavily on a downside move, with short positions outpacing longs.
- A significant drop in trading volume highlights fading investor interest amid macro uncertainty.
- Technically, LINK must break above its trendline and 200 EMA to reverse the bearish trend.
Chainlink (LINK) is facing increased market pressure amid rising global tariff tensions and a spike in bearish sentiment from traders. The popular blockchain oracle token has failed to break key resistance levels over the past week, signaling a challenging road ahead for bulls.
Traders Lean Bearish on LINK Amid Price Stagnation
According to on-chain analytics from CoinGlass, traders are increasingly favoring short positions over longs. As of July 8, short positions on LINK totaled $8.64 million, outpacing long positions worth $5.87 million. This imbalance has contributed to a bearish outlook, with the Long/Short Ratio dropping to 0.935.
Traders have also heavily leveraged positions around the $12.99 and $13.83 price levels, suggesting that LINK is under tight pressure at these zones. With LINK trading at $13.49 at press time, the market remains in a precarious consolidation phase.
Declining Volume Reinforces Weak Momentum
Supporting this gloomy sentiment is a drop in LINK’s trading activity. Data from CoinMarketCap shows a 12% decrease in 24-hour trading volume, highlighting reduced investor participation. The subdued activity indicates that traders are either waiting for a clearer trend or exiting positions due to uncertainty in broader macroeconomic conditions.
This weakening momentum is in line with global market jitters, particularly surrounding rising tariffs that have spooked crypto and equity markets alike.
Technical Outlook: Make-or-Break Levels for LINK
Technically, LINK is stuck beneath a key descending trendline, which has acted as strong resistance multiple times in recent weeks. This is the fourth instance of the asset testing this level, historically followed by a price rejection.
If LINK fails to hold above the $12.70 support level, analysts suggest a potential 17% drop could follow. Conversely, a daily close above the descending trendline and the 200-day Exponential Moving Average (EMA) near $16 would be necessary to confirm a bullish reversal.
Also Read: Chainlink (LINK) Under Pressure: Why a Rebound Isn’t Coming Soon
Currently, LINK remains below its 200 EMA, indicating a persistent downtrend.
With LINK hovering near crucial resistance and support levels, the next move could determine the short-term trajectory for the asset.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
