- Chainlink fell 5.25% after forming a bearish pattern near the 200-day EMA and falling trendline.
- A clean break above $ 16 is needed to shift the momentum; Until that time, the disadvantage remains increased.
Chain link [LINK] Showed signs of fatigue after a rally of 22%, in which sellers stepped near important resistance zones.
Despite the recovery of higher levels, the price could not break above the 200-day exponential advancing average (EMA), which formed a bearish structure that hinted at a possible reversal.
Link drops 5% while traders are withdrawing
In the last 24 hours, Link fell by 5.25%and traded around $ 14.40 at the time of the press.
During this period, investors and traders have shown a lack of interest in actively, resulting in a decrease in trade volume of 11%.
Data on Intotheblock chains revealed a 13% decrease in daily active addresses, which indicates decreasing user activity.
Bets on short positions have also risen in the same period, indicating that both traders and investors may prepare for the downward momentum.
At present, the most important liquidation levels were $ 14.25 at the bottom (support) and $ 15.77 at the top (resistance), with traders who delivered too much at these levels, according to unchain analysis company Coinglass.
Source: Coinglass
Data showed that if the sentiment remains unchanged and the price continues to fall to the level of $ 14.25, almost $ 2.90 million in long positions will be liquidated.
Conversely, if the sentiment shifts and the price rises to $ 15.77, around $ 15.37 million are liquidated in short positions.
It is clear that more capital had been stacked against link than to his advantage. Traders seem convinced that it will not actively violate the $ 15.77 ceiling – at least for now.
Chainlink points to a correction
From a technical point of view, Link was confronted with back-to-back rejections at a falling trendline and the 200-day EMA.
Source: TradingView
Every rally to these zones led to a steep sale and formed a textbook series of lower highlights.
This third rejection, now unfolding, is in line with historical price action. If link $ 15.77 does not turn in the support, another 10% drawing can drag the Altcoin to $ 12.70.