$LINK Chainlink’s support holds despite sell-off concerns: Is LINK’s breakout still possible?
Government-linked
$LINK transfers raised selling concerns as traders stayed bullish and support held.
The U.S. government reignited market attention after transferring 98,590 LINK, valued at roughly $768,000, to Coinbase Prime from wallets tied to seized FTX Alameda assets.
The transaction raised concerns about potential distribution since Coinbase Prime frequently serves institutional selling activity.
Although the amount represented only a small fraction of LINK’s circulating supply,
LINK eyes range recovery as RSI improves
At the time of writing, Chainlink [LINK] traded around $7.78 after rebounding from the June low near $7.34, where buyers stepped in and halted the latest decline.
The daily chart showed the asset recovering toward the key range support at $7.95, a level that previously acted as the lower boundary of a multi-month consolidation zone.
Meanwhile, resistance remained established near $9.80, while a larger ceiling stood around $10.85.
The Relative Strength Index recovered to 35.70 after recently dipping near oversold territory, indicating bearish pressure had eased slightly.
Although RSI remained below the neutral 50 level, the indicator suggested sellers no longer controlled the market as aggressively as before.
If buyers continued defending the $7.34–$7.95 region, LINK could attempt a broader recovery toward higher resistance zones.
Liquidation trends reveal fading downside aggression
Derivatives data showed a clear imbalance between shorts and longs despite recent volatility.
Total short liquidations reached approximately $57,270, while long liquidations stood near $5,040 during the latest session.
The significantly higher short liquidations suggested that traders betting against LINK were caught offside as the asset attempted to recover from recent lows.
Several exchanges recorded heavier losses among short positions, reinforcing signs of a developing short squeeze during the rebound.
#LINK