The derivatives market for Chainlink (LINK) is currently experiencing a phase of stabilization, as recent data reveals a significant decline in Open Interest. The source notes that this trend indicates a shift in trader behavior, moving away from leveraged positions.
Open Interest for LINK Drops
Open Interest for LINK has dropped to around $582 million, suggesting that traders are opting to exit their leveraged positions rather than engaging in aggressive short selling. This decrease points to a deleveraging process that could allow LINK's price to find a more organic base near established support levels.
Market Sentiment and Funding Rates
Market sentiment surrounding LINK remains neutral, with funding rates showing a slight negative trend. This development reinforces the notion of a cooling phase in the market, rather than a period of intense selling pressure. Such an environment may foster gradual accumulation, potentially supporting long-term stability for Chainlink as it navigates through these market dynamics.
As the derivatives market for Chainlink stabilizes, NVIDIA shares are also showing signs of recovery following a recent sell-off in the tech sector. For more details, see the full article on NVIDIA's stock performance here.
