- Chainlink, with a heavy heart, retreated 5.25% after a bearish pattern emerged near the 200-day EMA and a descending trendline, as if the market itself was a stern judge, handing down a verdict of decline.
- A valiant leap above $16 is required to shift the tides of fortune; until then, the shadows of downside risks loom large, like the specter of a forgotten prophecy.
Chainlink [LINK], after a spirited 22% rally, found itself weary and vulnerable, as sellers emerged from the shadows near key resistance zones, much like the sudden appearance of a dark cloud on a sunny day.
Despite its noble efforts to reclaim higher ground, the price faltered, unable to breach the 200-day Exponential Moving Average (EMA), thus forming a bearish structure that whispered of a potential reversal, as if the market itself was a master storyteller, weaving a tale of impending doom.
LINK dips 5% as traders pull back, or so they say…
Over the past 24 hours, LINK slipped by 5.25%, trading around $14.40 at press time, a price that seemed to mock the once hopeful investors.
During this period, investors and traders, like fickle friends, showed a marked lack of interest in the asset, resulting in an 11% drop in trading volume, as if the market was a grand ballroom where the music had suddenly stopped.
On-chain data from IntoTheBlock revealed a 13% decline in Daily Active Addresses, a sign that user activity was waning, much like the leaves of a tree in autumn, slowly falling to the ground.
Bets on short positions surged during the same period, a clear indication that both traders and investors were preparing for a downturn, as if they were soldiers fortifying their defenses against an impending siege.
As of this writing, the major liquidation levels were at $14.25 on the lower side (support) and $15.77 on the upper side (resistance), with traders over-leveraged at these levels, according to on-chain analytics firm CoinGlass, a firm that seemed to have a knack for predicting the market’s every move.
Data revealed that if sentiment remained unchanged and the price continued to fall toward the $14.25 level, nearly $2.90 million worth of long positions would be liquidated, a sum that seemed both significant and trivial in the grand scheme of things.
Conversely, if sentiment shifted and the price rose to $15.77, approximately $15.37 million worth of short positions would be liquidated, a sum that could make or break many a trader’s fortune.
Clearly, more capital was stacked against LINK than in its favor, a fact that seemed to weigh heavily on the market, as if the scales of fate were tipping in favor of the bears. Traders appeared confident that the asset wouldn’t breach the $15.77 ceiling—at least for now, a confidence that was both reassuring and unsettling.
Chainlink points to a correction, or so the charts say…
From a technical standpoint, LINK faced back-to-back rejections at a descending trendline and the 200-day EMA, as if the market was a relentless opponent, pushing the asset back at every turn.
Each rally toward these zones sparked a steep sell-off, forming a textbook series of lower highs, a pattern that seemed to echo the market’s relentless pursuit of profit.
This third rejection, now unfolding, aligned with historical price action, a pattern that seemed to suggest a grim fate. If LINK failed to flip $15.77 into support, another 10% drawdown could drag the altcoin down to $12.70, a price that seemed to loom like a dark cloud on the horizon.
Read More
2025-06-13 06:20