Chainlink (LINK) has been fluctuating around $10, showing a 25.91% decline over the past month. Despite market volatility, holders remain hopeful for a recovery, although futures traders are skeptical.
According to Santiment, Chainlink’s Funding Rate dropped to -0.015%, signaling a dominance of short positions and expectations of a price decline. Earlier data indicated a shift from long to short positions, correlating with LINK’s price dropping from $10.72 to $9.93.
BeInCrypto’s analysis of the Liquidation Heatmap reveals significant liquidity concentrations around $9.88-$9.97. If selling pressure continues, LINK’s price could drop further. However, high liquidity zones at $10.39 and $10.86 suggest potential rebounds if buying pressure increases.
Technically, LINK has been trading within a descending channel since late July. The On Balance Volume (OBV) and the Chaikin Money Flow (CMF) both indicate a bearish trend due to increased distribution over accumulation. This suggests that more investors are selling than buying, potentially pushing the price below $10 or even to $8.
Still, a rise in buying pressure might reverse the trend, possibly leading to a retest of $10.69 and a climb to $12.32.
