Increasing Possibility of Chainlink Plummeting 17% Due to Tariff Conflicts: Forecast and Future Trajectory
In the cryptocurrency market, Chainlink (LINK) is currently experiencing a bearish sentiment among traders, with a significant amount of short positions being built. According to data from CoinGlass, as of July 8, 2025, the short position value for LINK stands at $8.64 million, surpassing the long position value of $5.87 million[1].
At the time of writing, LINK is trading near $13.49, marking a 0.55% dip in the past 24 hours. This price dip comes amidst escalating tariff tensions, which have further reinforced the bearish outlook among traders and reduced investor and trader participation[2].
Historically, whenever the price of LINK has reached this level, it has faced rejection and recorded a decline[3]. If the current market sentiment remains unchanged and the price drops below the $12.70 level, a potential 17% decline could follow[4].
The recent price drop has seen Chainlink reach a key resistance level formed by a descending trendline. This is the fourth time the asset has tested this resistance level[5]. The trend could only reverse if the price breaks above the 200 Exponential Moving Average (EMA) and the $16 resistance level[6].
Despite the bearish outlook, traders have shown strong interest at the support level of $12.99 and the resistance level of $13.83[7]. The asset has been consolidating within a tight range for over two weeks, suggesting a lack of clear direction[8].
On-chain data shows that traders were over-leveraged at both the support and resistance levels[9]. If LINK breaks below $12.70, it could face a potential decline. However, if sentiment shifts and the price breaks above this prolonged resistance and closes a daily candle above the trendline, it could open the path for a strong upside rally[10].
The Long/Short Ratio for LINK stands at 0.935, with 48.32% of traders betting on long positions and 51.68% positioned short at press time[11]. The decreasing trading volume over the past 24 hours, down by 12% compared to the previous day, further reflects the bearish sentiment[12].
In conclusion, the current market sentiment for Chainlink (LINK) is bearish, with traders heavily betting on short positions. If the price drops below the $12.70 level, a potential 17% decline could follow. However, a shift in sentiment and a break above the resistance could lead to a strong upside rally.
[1] CoinGlass data [2] Escalating tariff tensions [3] Historically, whenever the price has reached this level [4] If market sentiment remains unchanged and the price drops below the $12.70 level [5] This is the fourth time the asset has tested this resistance level [6] The trend could only reverse if the price breaks above the 200 EMA and the $16 resistance level [7] Traders have shown strong interest at the support level of $12.99 and the resistance level of $13.83 [8] The asset has struggled to gain momentum over the past week due to escalating tariff tensions [9] On-chain data shows that traders were over-leveraged at both the support and resistance levels [10] On the other hand, if sentiment shifts and the price breaks above this prolonged resistance and closes a daily candle above the trendline [11] The Long/Short Ratio for LINK stands at 0.935 [12] According to data from CoinMarketCap, LINK's trading volume over the past 24 hours has decreased by 12% compared to the previous day.
- In the current crypto market, Chainlink (LINK) is experiencing a bearish sentiment among traders, with a significant amount of short positions being built, based on on-chain data.
- CoinGlass data shows that as of July 8, 2025, the short position value for LINK stands at $8.64 million, surpassing the long position value of $5.87 million.
- The current price of LINK is close to $13.49, marking a 0.55% dip in the past 24 hours, largely due to escalating tariff tensions that have exacerbated the bearish outlook among traders.
- Historically, LINK has faced rejections when its price reaches levels near the current one, potentially indicating a possible 17% decline if the current bearish sentiment remains and the price drops below the $12.70 level.
- The recent price drop has resulted in Chainlink reaching a significant resistance level formed by a descending trendline, marking the fourth time the token has tested this resistance level. A reversal of the trend can only occur if the price breaks above the 200 Exponential Moving Average (EMA) and the $16 resistance level.
