Chainlink 
$9 (LINK), one of the prominent altcoins, faced a severe setback due to an oracle update glitch, leading to user losses of over $532,000 in just three minutes. Following the issue, the price of LINK plummeted by 7.77% in a day, reaching $14.54. This incident raised doubts about the altcoin project, regarded as a leader in the oracle sector, while investors are closely scrutinizing on-chain data and liquidation maps. Despite a seemingly pessimistic short-term outlook, indicators dipping into oversold territory suggest the possibility of a squeeze. LINK’s direction is contingent upon the battle between the $13.86 support and $16 resistance levels.
On-Chain Data Reveals Critical Insights for Chainlink
Alphractal’s most recent liquidation heatmap for Chainlink indicates a brutal purge of long positions over the past week. This severe cleanup resembles typical capitulation phases where leveraged buyers capitulate. Interestingly, as of today, the potential for liquidation has shifted in favor of short-selling traders. This scenario suggests that if LINK’s price manages to maintain current levels, a short squeeze could spur a rapid recovery.
Past examples have shown that long liquidations quickly led to short squeezes right after forming a bottom. Despite LINK coin appearing weak, it is premature to declare all efforts exhausted. The decline in open positions indicates limited new leverage entry, which might accelerate the pace of potential rebound moves. Investors are keeping a close watch on the influx of coins from exchanges to wallets in the on-chain data. If the withdrawal trend strengthens, it may alleviate the selling pressure on the market.
Key Levels Highlighted on LINK Coin’s Price Chart
LINK coin currently trades around $14.54, with a market capitalization of $9.56 billion. The 24-hour trading volume stands at $598.9 million. The price movement within the day ranged between $14.46 and $15.91, with the first significant support at $13.86. A break below this level could pave the way for a decline to as low as $12.70 if sellers gain the upper hand.
Conversely, should buyers elevate the altcoin’s price above $16, a retest of $17.40 is anticipated. A sustainable candlestick closure above $17.40 is essential for a new mid-term momentum. Historically, this level has triggered intense selling reactions. Upon overcoming this barrier, the trajectory may extend to $19.80. Although technical indicators provide mixed signals, a volume-backed sudden reaction holds the potential to answer the question, “Has the decline ended?” positively.
In summary, LINK is positioned at a critical juncture amid the oracle crisis. The amplification of short liquidation pressure and reclaiming $16 could set the stage for a swift relief rally. Otherwise, a breach below $13.86 will become the new target for sellers.
