- Chainlink’s on-chain data reveals that traders are leaning heavily on the short side.
- If LINK breaks below $12.70, it could face a potential 17% decline.
Escalating tariff tensions have put Chainlink [LINK] over the edge. The asset has struggled to gain momentum over the past week, and traders’ recent bearish outlook keeps things unfavorable for LINK.
Traders show interest in shorting LINK
As of the 8th of July, traders appeared to have a bearish market outlook, betting heavily, per on-chain analytics tool CoinGlass.
Traders were over-leveraged at $12.99 on the lower side (support) and $13.83 on the upper side, levels where strong interest has been observed.
Source: CoinGlass
On-chain data showed that traders have built $5.87 million worth of long positions and $8.64 million worth of short positions. Thus, LINK was currently bearish and looked poised for a price drop.
In addition, LINK’s Long/Short Ratio stood at 0.935. 48.32% of traders were betting on long positions, while 51.68% were positioned short at press time.
Source: CoinGlass
Current price momentum
At press time, LINK was trading near $13.49, having recorded a modest price dip of over 0.55% in the past 24 hours.
This price drop amid tariff tension has not only reinforced the bearish outlook among traders but has also reduced investor and trader participation.
Data from CoinMarketCap revealed that LINK’s trading volume over the past 24 hours has dropped by 12% compared to the previous day.
Chainlink: Key levels to watch
AMBCrypto’s technical analysis revealed that LINK was at a make-or-break point at press time.
For over two weeks, the asset has been consolidating within a tight range and has now reached a key resistance level, formed by a descending trendline.
Source: TradingView
Historically, whenever the price has reached this level, it has faced rejection and recorded a decline. This marks the fourth time the asset has tested this resistance.
Potential upcoming levels for LINK token
If market sentiment remains unchanged and the price drops below the $12.70 level, a potential 17% decline could follow.
On the other hand, if sentiment shifts and the price breaks above this prolonged resistance and closes a daily candle above the trendline, it could open the path for a strong upside rally.
At press time, LINK is trading below the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating that the asset is in a downtrend.
This trend could only reverse if the price breaks above the 200 EMA and the $16 resistance level.
