Chain link (LINK) The price has risen 4% in the last 24 hours to $10.56. It has risen 31% from a critical demand zone in the last ten days after a significant drop since Q2 2024. However, weak momentum has limited the gains.
At the time of writing, with 60.8% of the 1 billion LINK in circulation, the asset has a market cap of $6.42 billion. With a large market cap, Chainlink (CONNECTION) is ranked 16th among the best cryptocurrencies.
Derivatives overview
Recently, LINKS Derivatives data showed open interest at $136.37 million. According to Coinglass, 5.44% of new contracts were added in the previous session. The 24-hour long/short ratio was 0.9964.
Meanwhile, short liquidation was higher at $109.94K versus $66.63K for long liquidation. This meant a bullish outlook for the perpetual market ahead.
Why is Chainlink (LINK) Price Still Feared?
Last week and at the time of writing, the Fear and Greed Index was 30, indicating expectations of rising prices.
Despite the growth of most assets, such as CONNECTIONconfirmations have not yet appeared on the charts. As on the daily chart of LINK, the bullish trend will continue once its price holds above the Change of Character (CHoCH) mark of $15.
Similarly, on August 12, Chainlink announced its esteemed partnership with asset management firm Superstate, which specializes in tokenized financial products. They want to integrate LINKS Price data is fed into its tokenized treasury fund (USTB). The Superstate Short Duration U.S. Treasury Fund (USTB) will track net asset value on-chain.
Asset management company @superstatefunds now uses #Chainlink infrastructure for tokenized assets.
How Chainlink data feeds, and soon Proof of Reserve, are helping to push critical NAV and AUM data onto the blockchain for Superstate’s USTB tokenized treasury bond fund ↓https://t.co/4rrW2VcY05 pic.twitter.com/K3OA6GnhAi
— Chainlink (@chainlink) August 12, 2024
While this partnership marks an optimistic development for LINK, investor sentiment is mixed. Meanwhile, on-chain data reflected expectations for price growth and showed signs of potential sell-off signals.
After the partnership was announced, the number of addresses containing LINK decreased. Investors unhappy with the partnership could dump their balances and cash out. The number of transactions also increased by more than 80%.
This suggests that investors may be positioning themselves to sell. In response, technical analysis suggests that CONNECTION Investors should be cautious and prepared (DYOR).
What awaits us on the LINK daily chart?
The overall trend is bearish as the price has fallen below the 50-day and 200-day EMA bands. However, the price is above the demand zone. Similarly, the MACD has formed a bullish cross and the RSI has broken the 14-SMA from below.
LINK needs to break the $12 and $14 resistance levels for investors to believe in its bullish nature. On the contrary, if the prevailing trend continues, bears will be watching the $8 and $6 levels.
