Chainlink (LINK) is experiencing price decline and high volatility, revealing short-term market changes.
Market and Chainlink (LINK) Price
Over the past 24 hours, Chainlink has seen a noticeable drop, falling from above $25.50 to below $24.00. The decline amounted to approximately 6.7%, indicating a short-term correction. Meanwhile, LINK has still shown strong growth over the past week and month—8.9% and 28%, respectively.
Support and Resistance in Price Movement
In recent days, Chainlink has exhibited high price volatility, reaching $26.7 before retreating. Resistance levels appear to be forming around $26.7 and $25.9, where LINK has faced rejection multiple times before. A critical support zone lies at $23.5, where LINK has previously found stability. "If the price bounces from this area, it may signal potential upside." (CITE_NA) There are also support levels between $24.1 and $24.4.
Shift in Market Sentiment and Derivatives Volume
The price movement has been accompanied by a significant decrease in activity in the derivatives space. Chainlink's derivatives volume has nosedived by 37.14%, dropping to $4.05 billion, indicating a decline in investor interest. Liquidation data reveals that $671.21K in long positions were liquidated over the past hour, contributing to recent price fluctuations. Furthermore, the long-to-short ratio on Binance shows more traders betting long, with a ratio of 2.06 for long positions.
Chainlink prices continue to exhibit fluctuations amidst high volatility under pressure at resistance levels, raising questions about future market direction.
