Chainlink Traders Are ‘Feeling Bearish’ Post 20% Rally

Chainlink [LINK] has gained significant attention in the crypto industry due to its recent notable surge. The altcoin experienced a remarkable 21% increase over the past 30 days, with a 9.5% gain in the last seven days, approaching the $8.50 mark. At press time, LINK is trading at $7.51, with relatively stable movement and no significant surges or declines. This sudden upward trend has led to heightened activity in the LINK market.

According to IntoTheBlock’s data, there has been a notable increase in the activity of new addresses for Chainlink, signifying a growing adoption of the cryptocurrency. Additionally, the network achieved a significant milestone by recording the highest on-chain volume of $350 million this year.

While all these indicators are undoubtedly bullish, there are several other signals pointing to the potential entrance of bears into the LINK market.

Also Read: Chainlink Registers Largest On-Chain Volume in 2023 with $350 Million

Are LINK traders inclined towards a bearish momentum?

Based on the 24-hour long/short ratio on Coinglass, it appears that LINK investors are heavily favoring the bearish trend. The Long/Short Ratio serves as an indicator that gauges the sentiment of market participants, capturing their opinions and actions. It is calculated by dividing the number of long positions by the number of short positions in the market.

Shorts held 51% of the open contracts, while longs accounted for 49%. As a result, futures traders displayed strong confidence in the downward movement of Chainlink, expecting more downside in the mid to long-term.

Where is LINK headed to?

CoinMarketCap enables the crypto community to make price estimations for their preferred assets. In June, this community accurately estimated the price of LINK with 88.46% precision. After receiving nearly 1,400 votes, the collective prediction for the end of July indicated that LINK will be trading at $7.04.

Although the decline may not be substantial, it does represent a setback from the asset’s progress toward reaching $10.

Also Read: Chainlink Whales Buy $20 Million LINK in 7-days