When the market reacted negatively to the Consumer Price Index (CPI) news, Bitcoin’s value fell below the crucial $35,000 threshold. This downturn triggered a widespread sell-off across the market, and Chainlink (LINK) was also affected. Despite a subsequent overall market recovery, Chainlink’s price revival is now under threat as its Netflow has shifted into positive territory, indicating potential bearish threats amidst its attempted bullish recovery.
LINK Faces Bearish Concerns
In the past day, the price of LINK experienced significant liquidations as it struggled to maintain stability above the $15 mark. Coinglass data shows that there was a substantial long liquidation exceeding $2.9 million, strengthening the resistance level.
Although there was recent accumulation of LINK near its price dip, over $4 million of the altcoin is now set for sale. Data from IntoTheBlock reveals that Netflow has seen a recent increase and is currently in a positive zone, signaling potential risks of a market pullback.
Netflow for LINK currently stands at 290K at a price point of $14.1, indicating that investors are transferring more of their holdings to exchanges than they are withdrawing. This change implies a shift in market sentiment, with approximately $4.06 million worth of LINK poised for sale. This scenario could lead to bearish concerns, especially if LINK’s price continues to rise, potentially prompting sellers to exit at a profit.
Notably, there was a significant increase in large transaction volumes following the decline in LINK’s price. Over the past three days, this metric has almost doubled, surging 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 a bearish sentiment, with 58% of positions betting on a price decline and only 42% in long positions. This suggests an increasing bearish momentum for LINK, hinting at a possible trend reversal.
What’s Next For LINK Price?
Chainlink has successfully tested the EMA100 trend line and is now preparing for a momentum above $16.5. Though buyers have successfully defended $13.3, there’s a potential bearish threat at $16.5. As of writing, LINK price trades at $14.9, surging over 2.2% from yesterday’s rate.
The current situation will likely lead short-term traders to take profits around $16. Following this, the LINK price might experience a pullback to the 38.2% Fibonacci retracement level at $14. A drop below that level will send LINK’s price toward $12.3.
A critical moment will come at around $16.7. If there’s a robust surge from this point, it would indicate that investors are still keen on buying during dips, potentially driving the price back up toward $19.5. Breaching this level might even lead the price to $25-$28. However, this bullish scenario could be negated if the price remains below the 20-day EMA.
