The price of Chainlink continues to face challenges amid the bearish pressure in the altcoin market, which has been triggered by a $1.5 billion theft at Bybit. Despite attempts by buyers to reverse the current downward trend, bearish forces dominate, pushing the price toward lower Fibonacci levels. Moreover, various on-chain metrics have confirmed a bearish outlook for the LINK price, increasing the likelihood of retesting a critical support line.
LINK’s Netflow Signals Upcoming Selling Pressure
Chainlink’s price is having difficulty finding buyers, with sellers driving the price towards support levels. Over the past 24 hours, there has been a notable number of long position liquidations for Chainlink. Data from Coinglass shows that out of $2.76 million in LINK transactions, $2.72 million were long liquidations. On the other hand, sellers liquidated approximately $42.7K worth of positions.
According to IntoTheBlock, bearish pressures on Chainlink could intensify as Netflow remains high above the midline, currently at $2 million, indicating that the volume of inflows exceeds outflows. This has led to an increase in exchange reserves as more investors move their assets to exchanges, raising the likelihood of a potential selloff with more LINK available for sale.
Additionally, there has been a decline in large transaction volumes over the past few days. Whale activity in LINK has decreased significantly, with the total investment dropping from a peak of $139.52 million to $25.81 million, which could maintain strong bearish pressure on LINK’s price amid decreasing volatility.
Amid these bearish conditions, interest in Chainlink trading has plunged. Open interest, which measures the total number of open trading contracts, has fallen to $517 million, a 1.7% decrease within just 24 hours.
Looking forward, the trends for LINK’s price seem to lean towards a downward correction. The long/short ratio, currently at 0.7969, shows that 56% of positions are anticipating a price decline for LINK.
What’s Next for LINK Price?
Chainlink’s price is experiencing significant bearish pressure, having recently fallen below the $17 mark. With buyers unable to halt the decline, LINK’s price is now slipping below immediate Fibonacci channels. At the time of writing, Chainlink is trading at $16.24, down 7.31% over the past 24 hours.
The LINK/USDT trading pair is encountering resistance as sellers block any potential upward movements. The Relative Strength Index (RSI) is nearing the oversold region at level 27, suggesting that Chainlink’s price might further decline to retest the $15.5 level. If it holds above this mark, it could provide a platform for buyers to drive the price toward $20.
However, bearish pressure will further intensify if LINK price drops below $15.5. This will trigger stop-loss order from buyers, resulting in a surge in long-liquidation. As a result, the LINK price might consolidate around $12.4.
