Following LINK’s Latest Drop

• Only 24.96% of holders are in profit, while 74.74% face losses.
• Intraday traders may be over-leveraged at $13 on the lower side and $14.82 on the upper side.

Following a 12% price drop, Chainlink’s native token lost a crucial support level at $14.85, where 17,000 investors and long-term holders accumulated 73.5 million LINK tokens. Now, their holdings have turned red, according to the on-chain analytics firm IntoTheBlock.

75% of LINK Investors See Red

After losing the $14.85 support level, LINK has paved the way for further price drops. Currently, LINK is trading near $13.80, down 12% in the last 24 hours. During this period, trading volume decreased by 15%, indicating lower participation from investors and traders compared to the previous day. Consequently, only 24.96% of LINK holders are in the money, while 74.74% are facing losses.

Chainlink (LINK) Price Action and Key Levels

According to AMBCrypto’s technical analysis, LINK may experience further downside after breaking out of a three-day consolidation between $15.85 and $14.85. If the asset closes a daily candle below $13.80, it could potentially drop another 10% to the $12.20 level in the near future. This sustained price drop suggests LINK may struggle to move above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a downtrend.

Intraday Traders’ Bearish Nature

The prevailing bearish sentiment among intraday traders is evident as they dominate short positions. Their numbers are increasing significantly as many believe the crypto price won’t recover soon. According to Coinglass, $14.82 is where short-position traders are over-leveraged, holding nearly $10.16 million in short positions. Meanwhile, long-position traders appear exhausted, with over-leveraging at $13, holding only $4.26 million in long positions. These over-leveraged positions reflect market sentiment, suggesting that short traders could push the price to $13 or lower by liquidating long positions.