Chainlink (LINK) experienced an 11.6% decline in open interest alongside a 7.3% price drop over the past 24 hours, according to data from Coinalyze and CoinGlass. The move came as many large-cap crypto assets faced intense selling pressure, with LINK showing some of the most bearish sentiment in speculative markets.
Funding rates and liquidation levels
Funding rates retreated toward zero but remained positive, indicating that long positions still dominate but with reduced conviction. A liquidation heatmap for the past month revealed notable liquidity clusters at $12 and just under $13, which could attract LINK prices higher in the short term before a move lower.
Higher timeframe technicals
On the weekly chart, LINK swept a swing level at $15 in September before falling lower. Another swing point at $10.87 is on the verge of being broken. A weekly close below this level would suggest a move toward $7.88, with $7 potentially the next multi-week price leg.
The liquidation heatmap also showed liquidity around $10.30, which aligns with a recent weekly low of $10.27. A bullish short-term scenario would involve a price sweep of $10.27 followed by a bounce past $11.80.
Bearish trend persists
On the 4-hour timeframe, Chainlink has been in a steady bearish trend for weeks, with a month-long trendline resistance proving a formidable opponent for buyers. The $10.61 swing low from mid-September is under increasing pressure from sellers, evidenced by lower lows in recent weeks.
In related news, Chainlink expanded access to Asian stock markets, but this tokenization push has not generated new demand for the altcoin.
With repeated challenges of the $10.6-$10.8 zone and steady selling pressure, LINK could be headed toward $7.88 in the coming weeks if the weekly support fails to hold.
