Chainlink (LINK) shows signs of potential price correction after its recent rally stalled near critical technical resistance. The cryptocurrency failed to break above the 200-day Exponential Moving Average (EMA) and a descending trendline, encountering strong resistance at $15.77. This rejection triggered a 5.25% price decline.
Market activity indicators signal weakening momentum, with trading volume dropping 11% and Daily Active Addresses decreasing by 13%. These metrics suggest diminishing market interest and growing bearish pressure on the asset.
Significant liquidation risks loom in the derivatives market. Approximately $2.90 million in long positions face liquidation if LINK drops below $14.25, while $15.37 million in short positions remain vulnerable if prices surge above $15.77.
Technical analysis indicates potential downside toward the $12.70 support zone if LINK fails to hold above $14.25. This represents a possible 10% correction from current levels. Market sentiment appears bearish amid repeated resistance rejections and declining momentum indicators.
Traders remain cautious as these technical developments point to continued downward pressure in the near term.