ambcrypto.com
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Many of the large-cap crypto assets were deep in the red amid intense selling pressure in the past 24 hours. Chainlink [$LINK] was one of the assets with the most bearish sentiment in the speculative markets.
At the time of writing, the Open Interest (OI) fell 11.6% in 24 hours alongside a 7.3% price slump as the The Funding Rates also retreated toward zero but were still positive.
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The past month’s liquidation heatmap revealed a notable magnetic zone at $12 and another just under $13. These clusters of liquidity could attract $LINK prices higher in the short term before a move lower.
In related news, Chainlink expanded access to Asian stock markets. This tokenization push has not bred new demand for the altcoin.
The weekly chart revealed a swing level at $15 that the altcoin swept in September before falling lower. Another swing point at $10.87 was on the verge of being broken.
A weekly session close below this level would suggest a move toward $7.88, and $7 could be the next multi-week price leg.
As the liquidation heatmap showed, there was a smattering of liquidity around $10.30, which had a confluence with a recent weekly low of $10.27. Hence, a bullish short-term scenario would be a price sweep of $10.27 followed by a bounce past $11.80.
For weeks now, Chainlink has seen a steady bearish trend sustained on the 4-hour timeframe. In particular, the month-long trendline resistance (orange) was a formidable opponent for buyers.
Additionally, it could be decision time for $LINK. The $10.61 swing low from mid-September was under increasing pressure from the sellers, evidenced by the lower lows in recent weeks. Moreover, something has to give, and it is likely to be the buyers’ resolve.
