TLDR
- Chainlink (LINK) price dropped to $15.49-$16.24, falling 7.31% in 24 hours
- A whale transferred 1.77 million LINK ($27M) to BitGet exchange, raising sell-off concerns
- Long/short ratio shows 56% of traders expect further price decline
- Technical support at $15.5 is crucial – breaking below could push LINK to $12.4
- TD sequential indicator suggests possible trend reversal and recovery toward $20
Chainlink (LINK) is facing increasing market pressure as its price hovers around the critical $15.5 support level. Over the past 24 hours, the cryptocurrency has fallen by 7.31%, trading between $15.49 and $16.24 as bearish sentiment continues to dominate the altcoin market.
The current struggles for LINK come amid broader market turbulence, partly influenced by a recent $1.5 billion theft at Bybit. This market-wide pressure has pushed Chainlink toward lower Fibonacci levels as sellers maintain control despite buyer attempts to reverse the trend.
On-chain data reveals a concerning pattern for LINK holders. The past day saw $2.72 million in long position liquidations, compared to just $42,700 on the sell side. This imbalance highlights the strong seller control in the current market environment.
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Chainlink
LINK Price
Adding to these concerns, Chainlink’s Netflow data shows more tokens moving onto exchanges than leaving them. With inflows exceeding outflows by about $2 million, the increasing supply available for sale could worsen selling pressure if the trend continues.
In perhaps the most worrying development, a single whale has deposited 1.77 million LINK tokens worth approximately $27 million on the BitGet exchange. While the motivation behind this large transfer remains unclear, such moves often signal selling intent and could put further downward pressure on Chainlink’s price.
Whale activity overall has decreased, with large transaction volumes falling from $139.52 million to just $25.81 million in recent days. This drop suggests major investors may be losing interest in buying or holding LINK at current price levels.
Trading metrics also paint a mixed picture for Chainlink. Open interest in LINK has declined by 1.7% in 24 hours to $517 million, showing decreased market participation. The trading volume sits at $626.24 million but lacks the heightened activity needed to support strong recovery.
The long/short ratio, currently between 0.7969 and 1.0471, indicates that roughly 56% of traders expect LINK’s price to decline further. This bearish sentiment among traders adds to the challenging outlook for Chainlink in the short term.
Technical indicators present a pivotal moment for LINK’s price trajectory. The Relative Strength Index (RSI) sits at 27, approaching oversold territory. While this could signal an eventual bounce, the immediate outlook remains cautious.
The $15.5 price level represents a critical support zone for Chainlink. If this level holds, LINK could potentially form a base for recovery toward the $20 mark. However, if price action breaks below this support, it could trigger additional stop-loss orders and long liquidations, potentially sending LINK down to its next support at $12.4.
Positive Signals
Not all signals are negative, however. Crypto analyst Ali Martinez notes that the TD sequential indicator is flashing a buy signal, which might indicate a trend reversal after the prolonged downtrend. After dropping 30% recently, LINK has shown some resilience with an 8.6% recovery in a single day.
#Chainlink $LINK appears ready for a rebound as the TD Sequential indicator flashes a buy signal on the daily chart! pic.twitter.com/SabLzw9QGA
— Ali (@ali_charts) February 26, 2025
For traders and investors, the coming days will be crucial in determining whether Chainlink can hold its ground at current levels or faces further decline. Market participants should closely monitor the $15.5 support and watch for any shift in whale activity or market sentiment that could indicate a change in direction.
