- Chainlink (LINK) faces mounting bearish pressure after a failed breakout above the 200-day EMA, with price slipping 5.25% and user activity declining.
- If LINK loses the $14.25 support level, it risks a further 10% drop toward $12.70 unless bulls reclaim momentum above $15.77.
LINK Slides After Rally: Is a Deeper Correction Looming?
Chainlink (LINK) is once again at a crossroads, with the bulls losing steam after a strong 22% rally. The price has dipped 5.25% over the past 24 hours, trading around $14.40, as sellers re-enter the market near the critical 200-day Exponential Moving Average (EMA) and a descending trendline. Without a decisive breakout above $16, downside risks are mounting.
Bearish Pattern Emerges Near Key Resistance
Despite climbing to reclaim higher levels earlier in the week, LINK failed to breach the 200-day EMA. This failure, combined with repeated rejections at the descending trendline, is forming a bearish structure consistent with previous price reversals. A clean break above $15.77 remains essential to shift momentum. Until then, LINK faces increased sell pressure.
On-Chain Metrics Suggest Caution
Supporting the bearish outlook, data from IntoTheBlock shows a 13% drop in Daily Active Addresses, a signal of declining user interest. Meanwhile, trading volume has slumped by 11%, and short positions are rising. According to CoinGlass, LINK is heavily shorted at current levels, with significant liquidation clusters forming around $14.25 and $15.77.
Also read: TRON (TRX) Price Analysis: Bullish Trend Intact Despite Recent Volatility and Bitcoin Dip
If LINK falls to $14.25, an estimated $2.90 million in long positions may be wiped out. In contrast, a sudden bullish reversal pushing the price to $15.77 could liquidate approximately $15.37 million in short positions.
Will LINK Hold the Line or Sink to $12.70?
Technically, LINK has formed a textbook series of lower highs—each attempt to rally is being met with aggressive selling. If bulls fail to reclaim $15.77 and flip it into support, the altcoin could retrace another 10%, possibly testing the $12.70 zone.
As Chainlink fights on two fronts—technical resistance and weakening investor confidence—$14.25 becomes a critical level to watch. Whether it holds or breaks could define LINK’s next big move.