LINK Struggles at $12.5 Resistance Amid Bearish Trends and Potential Downside Towards $10

  • Chainlink (LINK) is currently navigating a crucial resistance point at $12.5, signaling potential bearish trends based on recent market metrics.

  • Several factors, including on-chain indicators and liquidation data, suggest that LINK may experience further declines, potentially targeting $10 and $7.5.

  • As highlighted by CryptoQuant, “the elevated net deposits on exchanges indicate growing selling pressure, further supporting a bearish outlook for LINK.”

Chainlink (LINK) faces key resistance at $12.5, with on-chain metrics and liquidation data hinting at potential declines towards $10 and $7.5.

Current Price Dynamics and Resistance Levels for LINK

Chainlink [LINK] has recently been under pressure, testing a significant resistance level at $12.5. This level, which previously served as a support area, is critical for determining the short-term trajectory of LINK’s price. Observations indicate that this retest could indicate a bearish continuation if the price fails to reclaim upwards momentum.

Despite an initial attempt to recover, the inability to break above $12.5 reinforces the bearish sentiment in the market. Analysts suggest that a failure to hold this price could lead to further declines. LINK has not established a higher high since reaching approximately $16, demonstrating a weakening bullish structure.

On-Chain Data Analysis: Implications for LINK

The analysis of on-chain metrics presents concerning signals for investors looking at LINK. Currently, according to CryptoQuant, net deposits of LINK onto exchanges are hovering just above their seven-day average. This subtle increase is indicative of increased selling pressure, suggesting that investors might be anticipating further price drops.

When the net deposits rise, it often signifies that holders are transferring their assets from decentralized platforms to centralized exchanges, commonly to liquidate their positions. This pattern aligns with the technical bearish outlook for LINK, potentially justifying the recent price performance.

Chainlink Exchange Netflow

Source: CryptoQuant

Liquidation Levels and Market Sentiment for LINK

Leveraged traders play a crucial role in LINK’s short-term price action. Current liquidation heatmaps indicate a significant cluster of long liquidation levels around the critical $10 mark. This is noteworthy because market makers typically aim to exploit liquidity zones during volatile periods, heightening the risk of a cascade of liquidations if the price dips below this threshold.

Chainlink Liquidation Heatmap

Source: CoinGlass

If LINK breaches the $10 mark, the resulting liquidation pressure may catalyze further declines, with the $7.5 level becoming increasingly probable as a target for rebounding prices. Consequently, it is crucial for LINK to hold above the $12.5 resistance levels to avert deeper market losses.

Conclusion

The prevailing trends indicate that Chainlink (LINK) is at a crossroads, with the $12.5 resistance seemingly holding back any potential recovery. Without a decisive move above this threshold, the path of least resistance appears downward, compounded by rising selling pressure from on-chain metrics and liquidation risks. Investors are encouraged to monitor these developments closely as LINK’s outlook remains uncertain amidst broader market volatility.

BREAKING NEWS

Grant Cardone’s Cardone Capital Adds 200 BTC (Bitcoin) After Last Week’s 300 BTC Purchase

COINOTAG News reported on October 17 that Grant Cardone,...

RIPPLE LABS LEADS $1 BILLION FUNDRAISE FOR XRP HOARD: BBG

RIPPLE LABS LEADS $1 BILLION FUNDRAISE FOR XRP HOARD:...

Florida House Bill 183 Would Allow State CFO to Invest Up to 10% of Public Funds in Bitcoin

According to reporting by The Block via COINOTAG on...

Trump’s $250M White House Banquet Hall Fundraiser Draws Ripple (XRP), Coinbase and Gemini Executives

According to financefeeds and disclosed by The Wall Street...

Whale Opens $100M ETH 25x Short at $3,926.95 — 0x0b5…1C2D5 Posts $638K Unrealized Profit

On-chain analyst activity shows address 0x0b5...1C2D5 initiated a significant...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img