Chainlink Price Drops Amid Market Volatility
Chainlink (LINK) continues to fall, trading just above $18.00 on Wednesday. Since Monday, the token has lost 10% of its value. This drop reflects the overall weak trend in the crypto market. If buyers stay inactive, Chainlink could fall another 15% to $15.00. High volatility and a cautious retail market may keep LINK prices low for longer.
Derivatives Market Shows Weakness
Chainlink saw a major sell-off on Friday, with $167 million in long positions liquidated. Short positions lost about $16 million. Liquidations have slowed as prices stabilize, but volatility remains high. This could lead to further losses if the price keeps dropping.
Futures Open Interest (OI) rose slightly to $737 million but then fell back to $704 million. This shows traders are hesitant after the recent sell-off. If OI drops more, it would signal stronger bearish pressure and increase chances of LINK falling to $15.00.
Technical Analysis Points to Bearish Trend
Chainlink trades below key moving averages: the 200-day EMA at $19.08, the 100-day EMA at $20.59, and the 50-day EMA at $21.40. This suggests bearish sentiment may continue. The MACD indicator has shown a sell signal since Friday, encouraging caution among investors.
The Relative Strength Index (RSI) is at 38, indicating growing bearish momentum. If this trend holds, LINK could test the $15.00 support level again, last seen in early August.
However, a rebound above $20.00 is still possible if buyers step in. Key resistance levels to watch are the 200-day, 100-day, and 50-day EMAs.
