Chainlink (LINK) has captured market attention with increased social dominance, reaching its highest level since December 2023. However, the weakening buying pressure is a concern.
Despite the attention, a negative divergence has been identified on LINK’s price chart, indicating a potential loss of recent gains. This divergence, along with a declining number of addresses holding LINK, raises concerns about the altcoin's future performance.
The decline has pushed some holders to sell their tokens, decreasing the number of LINK holders to 722,000. While an uptick in social dominance often signals bullish sentiment if markets stabilize, the bearish divergence counters this optimism.
Recently, although LINK’s price showed a slight increase, the Chaikin Money Flow (CMF) indicator has been declining. This suggests weakening underlying volume and money flow, pointing to a potential price drop. If LINK fails to maintain current levels, it might revert to the $10.25 support level and could even drop to $8.08.
Conversely, if the uptrend continues, LINK’s price could rally to $11.24, invalidating bearish projections.
