Market

Chainlink (LINK) Price Puts $12 Million Short Contracts at Risk

Published

1 week ago

June 25, 2024

admin

As Chainlink (LINK) wobbles around the $13 to $14 region, traders will seek hidden insights into the potential price movement. As expected, recent events have forced market participants to adopt a more cautious approach.

However, the upswing in the last 24 hours, which caused LINK’s price to increase by 7.72%, may change the broader perception. With a potential price increase on the cards, here’s what on-chain data tells about the possible impact.

Chainlink Traders Need to Watch Out

BeInCrypto analyzes Chainlink’s Liquidation Map to understand the likely effect of a further uptrend on LINK traders.

Liquidation Map: This map examines previous price trends to identify potential levels with liquidation risks.

At press time, LINK trades at $13.94, a 6.93% increase in 24 hours. With rising volume, the cryptocurrency’s value may head toward $15.

According to Coinglass, if Chainlink’s price hits $15.62, the Cumulative Short Liquidation Leverage is $12.56 million. In non-technical terms, traders who have placed bets on a LINK’s price decrease with insufficient margin balance will lose money should the prediction come to pass.

Read More: What Is Chainlink (LINK)?

Chainlink Liquidation Map. Source: Coinglass

In contrast, positions valued at $10.99 million will be liquidated if LINK drops to $12.18. However, data from IntoTheBlock reveals that a plunge to the $12 region looks unlikely, as evident from the Bulls and Bears indicator.

Bulls and Bears indicator: This indicator measures the number of addresses that bought or sold more than 1% of the total trading volume. Those who bought more than 1% are called bulls, while those selling are tagged as bears.

Furthermore, there were more bears than bulls in the last seven days. This is one reason LINK slipped to $12.91 on June 24.

Chainlink Bulls and Bears Indicator. Source: IntoTheBlock

But as of this writing, bulls have taken over. Should they sustain this momentum, LINK may resist downward pressure and trade higher.

LINK Price Prediction: Higher Values Likely

From a technical point of view, we observed that LINK formed a double-bottom pattern. The double-bottom pattern often indicates a reversal and, in many cases, the start of a potential uptrend.

It happens when the price touches a support level twice, indicating a pause in the asset’s downtrend. On the daily chart, LINK formed a similar pattern between November 2023 and January 10 this year.

Between January 26 and February 13, LINK’s price rallied from $13.82 to $20.50. Based on this historical performance, the cryptocurrency’s value may start an uptrend, taking it to $14.73 within the next few days. If validated, the price of LINK can rise to $17.73 in some weeks.

Chainlink Daily Analysis. Source: TradingView

Meanwhile, the Relative Strength Index (RSI) which measures momentum, is recovering from its oversold condition.

When the RSI reading is 30 or below, it means that an asset is oversold. Readings at 70 or above indicate overbought conditions. As of this writing, the RSI is at 39.63, suggesting that the potential rise to $15 has not yet been validated.

Chainlink Relative Strength Index. Source: TradingView

However, if the reading crosses the 50.00 neutral zone, LINK can reach the price mentioned above or trade higher. But the prediction will be invalidated if the momentum succumbs to bearish forces.

Bitcoin (BTC) is another factor that can hinder the uptrend. A few days ago, the coin faced selling pressure, which drew the wider market down.

As of this writing, Arkham Intelligence reveals that the German government is moving another round of BTC to exchanges. Should these sell-offs continue, prices of altcoins, including LINK, may stop increasing, and the next move for the token may be below $12.80.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Source link

Related Topics:Chainlink Contracts LINK Million Price Puts Risk Short

Up Next

Can PEPE Price Leverage Rising Conviction to Trigger Recovery?

Don't Miss

Will Consistent Demand Pull the Graph (GRT) Price Back Up?

Click to comment

Market

Exploring Upward Momentum and Bullish Prospects

Published

42 mins ago

July 3, 2024

admin

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

Source link

Market

Should Investors See This as a Buying Chance?

Published

2 hours ago

July 3, 2024

admin

Source link

Market

Ethereum Reverses Course: Can ETH Bulls Save The Day?

Published

3 hours ago

July 3, 2024

admin

Ethereum price failed to climb above the $3,520 zone and corrected gains. ETH is now showing bearish signs below the $3,400 support zone.

Ethereum started a downside correction after it failed to surpass the $3,520 zone.
The price is trading below $3,400 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is now at risk of more downsides below the $3,350 support zone.

Ethereum Price Dips Again

Ethereum price failed to continue higher above the $3,520 and $3,550 resistance levels. ETH formed a top near $3,520 and started a fresh decline like Bitcoin. There was a move below the $3,450 and $3,420 support levels.

The bears pushed the price below the 50% Fib retracement level of the upward wave from the $3,351 swing low to the $3,516 high. It seems like the price trimmed most gains and might continue to move down below the $3,350 support zone.

Ethereum is trading below $3,400 and the 100-hourly Simple Moving Average. It is also below the 76.4% Fib retracement level of the upward wave from the $3,351 swing low to the $3,516 high.

If there is a recovery wave, the price might face resistance near the $3,400 level. There is also a key bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD. The first major resistance is near the $3,435 level.

The next major hurdle is near the $3,465 level. A close above the $3,465 level might send Ether toward the $3,520 resistance. The next key resistance is near $3,550. An upside break above the $3,550 resistance might send the price higher. Any more gains could send Ether toward the $3,650 resistance zone.

More Losses In ETH?

If Ethereum fails to clear the $3,410 resistance, it could continue to move down. Initial support on the downside is near $3,365. The first major support sits near the $3,350 zone.

A clear move below the $3,350 support might push the price toward $3,250. Any more losses might send the price toward the $3,120 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,350

Major Resistance Level – $3,435

Source link