As the market reacted negatively to the Consumer Price Index (CPI) news, Bitcoin’s value fell below the crucial $35,000 threshold. This downturn caused a widespread sell-off in the market, and Chainlink (LINK) was also affected. Despite a subsequent general market recovery, Chainlink’s price rebound is now under threat as Netflow has shifted into positive territory, signaling potential bearish threats amid its attempted bullish recovery.
LINK faces bearish concerns
Over the past day, LINK’s price has undergone significant liquidations as it struggled to maintain stability above $15. Coinglass data shows that there was a substantial long-term liquidation of over $2.9 million, which strengthened the resistance level.
While there has been some recent accumulation of LINK near the price drop, more than $4 million of the altcoin is now up for sale. Data from IntoTheBlock shows that Netflow has seen a recent surge and is currently in a positive zone, indicating potential risks of a market pullback.
Netflow for LINK currently stands at 290,000 euros at a price of $14.1, indicating that investors are transferring more of their holdings to exchanges than withdrawing. This change implies a shift in market sentiment, with LINK trading at approximately $4.06 million. This scenario could lead to bearish concerns, especially if LINK’s price continues to rise, which could potentially prompt sellers to exit with profits.
In particular, there was a significant increase in high transaction volumes due to the decline in the price of LINK. Over the past three days, this value has almost doubled, from $143 million to $248 million, indicating activity among whales during LINK’s price drop.
Currently, the long/short ratio for LINK, at 0.7238, shows bearish sentiment, with 58% of positions betting on a decline and only 42% on long positions. This indicates increasing bearish momentum for LINK, signaling a possible trend reversal.
What’s next for the LINK Prize?
Chainlink has successfully tested the EMA100 trendline and is now preparing for momentum above $16.5. While buyers have successfully defended USD 13.3, there is a potential bearish threat at USD 16.5. At the time of writing, LINK price is trading at $14.9, up over 2.2% from yesterday’s price.
The current situation will likely lead to short-term traders taking profits around $16. After this, LINK price could experience a pullback towards the 38.2% Fibonacci retracement level at $14. A drop below that level will send LINK’s price towards $12.3.
A critical moment comes around $16.7. If there is a robust increase from this point, it would indicate that investors are still keen to buy on dips, potentially pushing the price back up towards $19.5. Crossing this level could even take the price to $25-$28. However, this bullish scenario could be negated if the price stays below the 20-day EMA.