After a recent 22% rally, Chainlink (LINK) has started to decline, accompanied by emerging bearish signals in the market.
Price Drops and Technical Signals
LINK's price has dropped by 5.25% in the last 24 hours, currently trading around $14.40. Despite briefly reclaiming higher levels, the asset failed to breach the crucial 200-day exponential moving average and continues to form a descending pattern that historically precedes further pullbacks.
Declining Trading Activity
Investor enthusiasm appears to be fading, with trading volume dropping by 11%, and Daily Active Addresses declining by 13% according to IntoTheBlock. This indicates a slowing user participation and weakening market conviction.
Increasing Bearish Positions
Bearish sentiment is growing among traders, with a significant spike in short positions suggesting many are betting against LINK's ability to climb past its resistance ceiling of $15.77. CoinGlass analytics indicate a concentration of leveraged positions at two major liquidation levels, with support at $14.25 and resistance at $15.77.
The current situation surrounding Chainlink indicates the asset's vulnerability. With a bearish trend and declining investor interest, further price fluctuations remain unresolved.
