After an impressive 22% rally, Chainlink (LINK) appears to be losing momentum as bearish signals emerge across both technical charts and on-chain activity. The asset has dropped by 5.25% in the last 24 hours, currently trading around $14.40, according to CoinGlass data. Despite briefly reclaiming higher levels, LINK failed to breach the crucial 200-day Exponential Moving Average (EMA), forming a descending pattern that historically precedes further pullbacks.
Trading Volume and User Activity Decline
Investor enthusiasm appears to be fading, with trading volume dropping 11%, and IntoTheBlock reporting a 13% decline in Daily Active Addresses—a sign of slowing user participation and weakening market conviction.
LINK Traders Increasingly Bearish
Meanwhile, bearish sentiment is growing among traders. Short positions have spiked significantly over the last 24 hours, suggesting many are betting against LINK’s ability to climb past its resistance ceiling of $15.77.
CoinGlass analytics indicate a large concentration of leveraged positions at two major liquidation levels:
Support: $14.25 — If LINK dips to this zone, roughly $2.90 million in long positions could be wiped out.
Resistance: $15.77 — A move above this level would liquidate an estimated $15.37 million in short positions, suggesting significantly more capital is stacked on the bearish side.
The asymmetry in liquidation data suggests traders expect LINK to remain suppressed below the $15.77 mark in the near term.
Technical Indicators Point to Correction
From a technical standpoint, Chainlink has faced three consecutive rejections at a descending trendline and the 200-day EMA—both strong resistance zones.
This recurring failure to sustain rallies has formed a classic lower highs structure, aligning with a broader bearish trend. Unless LINK can decisively flip $15.77 into support, analysts warn of a potential 10% correction, which could drag the token down to $12.70, a key level from earlier support zones.
With the broader crypto market showing signs of consolidation, LINK’s trajectory remains fragile.
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