- LINK lost key support at $14.85, risking another 10% drop toward $12.20.
- Short traders dominate, with $10.16 million in leveraged positions pressuring prices lower.
- Low trading volume signals weak buying interest, adding to the bearish outlook.
Chainlink — LINK, faces intense selling pressure after losing a critical support level. A sharp 12% drop pushed LINK below $14.85, a level where 17,000 investors previously accumulated 73.5 million tokens. Now, 75% of holders see losses, adding to market uncertainty. At press time, LINK trades near $13.80, struggling to regain strength. With selling pressure increasing and short traders dominating, another drop seems likely. Bulls need to act fast before momentum shifts further downward.
LINK Battles Selling Pressure as Key Support Crumbles
Breaking below $14.85 signaled a bearish shift, forcing prices into a steeper decline. Buyers attempted to defend this level but failed under growing sell orders. The recent drop leaves LINK searching for stability, with $13.80 now acting as temporary support. A 15% decline in trading volume suggests hesitation among investors. Lower volume often signals uncertainty, reducing the chances of a strong recovery.
If LINK closes below $13.80, another 10% drop could bring prices to $12.20. The 200-day Exponential Moving Average now acts as a major barrier. Assets trading below this level often struggle to regain bullish momentum. Without strong buying pressure, LINK may remain in a downtrend for the foreseeable future.
Short Traders Tighten Grip, Bulls Lose Strength
Short traders continue to dominate, betting on further losses. Data from Coinglass reveals nearly $10.16 million in over-leveraged short positions at $14.82. Meanwhile, long positions stand at just $4.26 million, showing a clear imbalance.
If the price of LINK moves toward $13, long positions could face forced liquidations. A chain reaction of selling may follow, pushing the price even lower. Without a strong bullish response, sellers will remain in control.
For now, LINK is navigating choppy waters and faces a rough road ahead. Breaking key support levels has weakened investor confidence, giving short traders more control. Without strong buying momentum, LINK could see further declines, leaving bulls with little room to recover.
