Chainlink (LINK) has experienced significant volatility recently, with its price dropping over 13% from Monday's high to a critical support level of around $11.20. This area is crucial for traders and investors who are closely watching the on-chain data from Santiment, which shows a cooling demand for LINK.
On-chain metrics highlight uncertainty and fear in the market. Santiment's data reveals a negative price-daily active address (DAA) divergence, indicating a weakening market with a -61.2% disconnect between price and network activity. This suggests the potential for further declines.
Currently, LINK trades at $11.22 but faces resistance after losing its 4-hour 200 moving average. Key support levels to watch include $10.91. Holding above this level could lead to sideways consolidation and a possible uptrend, but a failure could push LINK down to $9.50 or $8.12.
Traders are keenly observing these critical price points to determine whether LINK will recover or continue to decline, potentially leading to a bearish trend.
