In recent days, the price of Chainlink has experienced a significant uptick in buying interest, influenced by Bitcoin’s rally to $38K, which boosted the positions of leading altcoins. Despite a robust market correction, LINK’s price continues to attract buyers, giving opportunities on the recent dip in value. This increasing buying pressure for Chainlink is building momentum for a potential breakout in the coming hours.
LINK’s Netflow Becomes Negative With Price Decline
In the past 48 hours, Chainlink has seen a significant increase in long position liquidations as its price struggled to maintain buying momentum around the $15 mark. According to Coinglass data, this has led to over $2.1 million in buyer positions being liquidated, thereby strengthening the resistance level for LINK’s price.
Despite the recent downturn, the dip in Chainlink’s price seems to be offering buyers an opportunity to accumulate LINK at a lower price. Data from IntoTheBlock indicates that in the last two days, the Netflow has consistently been negative, signaling a phase of accumulation among holders.
A negative Netflow implies that the outflow exceeds the inflow, indicating a trend where more holders are withdrawing LINK rather than depositing it, even amidst a price drop. This trend points to an ongoing accumulation strategy by LINK holders as the price of the altcoin falls. The presence of a growing number of buyers near the immediate support line could potentially trigger a breakout.
Notably, Chainlink is experiencing an increase in its long/short ratio, currently trading at 1.1249. This data reveals that approximately 53% of futures positions are now expecting a rise in price, while 47% are holding short positions. This shift is progressively making the sentiment of accumulation stronger for Chainlink. However, a sudden profit-taking activity near $15 might begin another correction for the LINK price.
What’s Next For LINK Price?
Chainlink experienced a breakout above its declining trend line, yet the upward momentum wasn’t sustained, leading to a decline back below the moving averages. However, bears failed to capitalize on the downturn as buyers quickly rebounded the price from $13.7. As of writing, LINK price trades at $14.3, surging over 1.6% from yesterday’s rate.
As the LINK price is moving within a specific channel, the critical level to monitor is the break of the pattern. A drop below the support line at $13.6 will send the price below the EMA200 trend line and could indicate a comeback of bearish sentiment, potentially driving the price towards the 61.8% Fibonacci retracement level at $11.7.
Conversely, a surge from the EMA lines could signal ongoing positive sentiment and a purchasing strategy during price dips. This could pave the way for a potential uptrend, targeting the $15.5 level. Success in this will send the price above $18.
