After a strong 22% surge, Chainlink (LINK) is showing signs of weakening momentum as bearish indicators surface across both technical and on-chain metrics. The token has declined 5.25% over the past 24 hours and is now trading near $14.40, according to CoinGlass data.
Despite temporarily pushing to higher levels, LINK was unable to break above the key 200-day Exponential Moving Average (EMA). The rejection at this level, combined with a developing descending price pattern, suggests the potential for further downside—mirroring historical setups that often precede extended pullbacks.
Investor enthusiasm for Chainlink appears to be waning, as trading volume has fallen by 11%, indicating reduced market engagement. According to IntoTheBlock, Daily Active Addresses have also dropped by 13%, reflecting a decline in user participation and overall network activity.
This cooling sentiment adds to bearish pressure, suggesting that market conviction is weakening. As both on-chain and trading metrics trend downward, the likelihood of LINK retesting key support levels such as $14.25 continues to rise.
Meanwhile, bearish sentiment is intensifying among Chainlink (LINK) traders. Over the past 24 hours, short positions have risen sharply, signaling that many market participants are wagering against LINK’s ability to break above the critical $15.77 resistance level.
According to CoinGlass analytics, there is a significant buildup of leveraged positions clustered around two major liquidation zones, suggesting increased volatility ahead. If price action nears these levels, a wave of forced liquidations could amplify market movements in either direction—heightening the risk of sharp pullbacks or sudden squeezes.
The clear asymmetry in liquidation data indicates that traders largely anticipate Chainlink (LINK) to stay capped below the $15.77 resistance in the short term. This imbalance reflects a prevailing bearish bias, with more leveraged positions stacked above current price levels—implying limited upside confidence and heightened risk of downward pressure if resistance holds.
From a technical perspective, Chainlink (LINK) has encountered three consecutive rejections at both a descending trendline and the 200-day Exponential Moving Average (EMA)—two major resistance zones currently capping price action.
This repeated failure to sustain upward momentum has established a lower highs pattern, consistent with a broader bearish trend. Unless LINK can decisively flip the $15.77 resistance into support, analysts caution that the token may face a 10% correction, potentially dropping toward $12.70, a previously tested support level.
With the wider crypto market entering a consolidation phase, LINK’s trajectory remains vulnerable, and any further weakness could accelerate short-term downside pressure.
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