After transferring 98.590 LINK (worth approximately $768,000) from wallets linked to seized FTX assets, the U.S. Government re-attracted market attention.
It is a transaction. Coinbase Prime is frequently used by institutions to sell products, so there are concerns raised about possible distribution.
The amount represents only a small fraction Historically, the circulating supply of LINK has been influenced by government-linked movement.
Bulls will not back down
Binance’s traders remained strongly bullish about LINK despite the renewed concern over potential sell side activity.
Binance’s top Trader Long/Short ratio reached 2,61. 72.31% accounts were long-side positioned, compared with only 27,69% who held short exposure.
The traders were still betting on a recovery, rather than planning for a prolonged decline.
Even after weeks of weakening prices, the bullish position persisted, indicating that confidence in higher levels was still intact.
The market is more volatile if there are many long positions.
The sentiment remains stronger than previous price movements suggest.
LINK aims to improve range as RSI improvements increase
The time this was written is the current date. Chainlink [LINK] The price of the stock was around $7.78, after bouncing back from its lows in early June. Buyers stepped up and stopped this latest drop.
The chart for the day showed that the asset was recovering towards $7.95 – the range’s key support. This level had previously been the lower border of an area where consolidation was taking place over a period of several months.
While resistance was still near $9.80 and a higher ceiling around $10.85, the market continued to move in the opposite direction.
After recently falling into oversold territory and dipping to 35.70, the Relative Strength Index has recovered slightly. This indicates that bearish pressure has eased a little.
The RSI remained under the neutral level of 50. This indicated sellers did not control the market in the same way as they had before.
If buyers continued defending the $7.34–$7.95 region, LINK could attempt a broader recovery toward higher resistance zones.
A decline in aggression is revealed by the liquidation trends
Despite recent volatility, the derivatives data revealed a distinct imbalance between longs and shorts.
The total amount of short liquidations was approximately $57,270 and the long liquidations were near $5,000 during the most recent session.
As LINK attempted to rebound from its recent lows, traders who had bet on LINK’s decline were caught out.
The losses on short positions were higher in several exchanges, confirming signs that a short squeeze is developing during the recovery.
Binance accounted alone for about $38,350 short liquidations and approximately $3,930 long liquidations.
The gap between short and long-term holders was a clear indication that the pressure on shorts is far greater than for long-term investors, despite continued uncertainty about government transfers.
The relatively low number of liquidations on long positions indicated that the bullish position remained intact. This allowed longs to retain control, while participants in the market reassessed direction risks.
Final summary
- Despite concerns raised by the government-linked LINK transfer, traders’ confidence remained high.
- The hope for range recovery was kept alive by recovering RSI, and the resilient support.
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Source: ambcrypto.com
