Chainlink Traders Lose Confidence as Bearish Streak Persists
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Due to its dominance in the DeFi space, many expect the token to eventually recover after a crash. However, the past few weeks have been different for the project, as investors start to lose confidence.
LINK currently trades around $11.40, a jaw-dropping 370% away from its all-time high. The cryptocurrency also trades around its lowest point in over 17 months.
The primary concern for Chainlink, at the moment, is that investors could start dumping their holdings amid worsening sentiments. This concern is validated by reports that LINK traders are showing the worst level of negative sentiment seen in almost three months.
At press time, reports show that over 528,000 LINK holders are out-of-the-money or in losses. This figure represents a critical 82% of all token holders. This comes despite several price action attempts to rescue investors.
This status is worsened by the reality that LINK investors have never, in history, had it this worse. The last time this many investors faced this current level of losses being witnessed was back in December 2018.
That said, the current market sentiment could trigger panic and FUD in the market. However, on-chain analytics platform Santiment argues that this possibility is a good thing for the token.
Key Chainlink Levels to Watch — May 4
As mentioned earlier, Chainlink has fallen to its lowest point in over 17 months, as the DeFi giant slumped below the $11.00 mark. After a sideways open to the week, LINK now appears to be gaining some upward traction, as it tapped the $11.50 top for the first time in four days.
That said, the broader market sentiment has received a mild boost over the hours as traders hold ahead of the much-anticipated US Fed interest rate decision, dropping later today.
LINK will remain in a bearish bias until we record a break into the pivot zone at $15, which also houses the daily 100 EMA.
Meanwhile, my resistance levels are at $12.00, $15.00, and $17.50, and my support levels are at $11.00, $10,00, and $8.00.
Total Market Capitalization: $1.76 trillion
Chainlink Market Capitalization: $5.3 billion
Chainlink Dominance: 0.30%
Market Rank: #25
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