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The U.S. government reignited market attention after transferring 98,590 $LINK, valued at roughly $768,000, to Coinbase Prime from wallets tied to seized FTX Alameda assets.
The transaction raised concerns about potential distribution since Coinbase Prime frequently serves institutional selling activity.
Although the amount represented only a small fraction of $LINK’s circulating supply, government-linked movements historically influenced sentiment across digital asset markets.
Bulls refuse to back down
Despite renewed concerns surrounding potential sell-side activity, Binance traders maintained a strongly bullish stance toward $LINK.
Binance’s Top Trader Long/Short Ratio reached 2.61, while 72.31% of accounts remained positioned on the long side compared to only 27.69% holding short exposure.
This imbalance showed traders continued betting on recovery rather than preparing for an extended decline.
Interestingly, bullish positioning persisted even after weeks of price weakness, suggesting confidence in higher levels remained intact.
Nevertheless, heavily crowded long positioning often increases market sensitivity to volatility if support levels fail.
For now, traders appeared willing to absorb negative headlines and continued favoring upside exposure, indicating sentiment remained stronger than recent price performance suggested.
Source: CoinGlass
$LINK eyes range recovery as RSI improves
At the time of writing, Chainlink [$LINK] traded around $7.78 after rebounding from the June low near $7.34, where buyers stepped in and halted the latest decline.
The daily chart showed the asset recovering toward the key range support at $7.95, a level that previously acted as the lower boundary of a multi-month consolidation zone.
Meanwhile, resistance remained established near $9.80, while a larger ceiling stood around $10.85.
The Relative Strength Index recovered to 35.70 after recently dipping near oversold territory, indicating bearish pressure had eased slightly.
Although RSI remained below the neutral 50 level, the indicator suggested sellers no longer controlled the market as aggressively as before.
If buyers continued defending the $7.34–$7.95 region, $LINK could attempt a broader recovery toward higher resistance zones.
Source: TradingView
Liquidation trends reveal fading downside aggression
Derivatives data showed a clear imbalance between shorts and longs despite recent volatility.
Total short liquidations reached approximately $57,270, while long liquidations stood near $5,040 during the latest session.
The significantly higher short liquidations suggested that traders betting against $LINK were caught offside as the asset attempted to recover from recent lows.
Several exchanges recorded heavier losses among short positions, reinforcing signs of a developing short squeeze during the rebound.
Binance alone accounted for roughly $38,350 in short liquidations compared to about $3,930 in long liquidations.
This gap highlighted that short sellers faced far greater pressure than long holders, even as uncertainty surrounding the government-linked transfer persisted.
Meanwhile, the relatively low level of long liquidations indicated that bullish positions remained largely intact, allowing longs to maintain control while market participants reassessed directional risks.
Source: CoinGlass
Final Summary
- Government-linked $LINK transfers revived selling concerns, yet trader confidence remained elevated.
- Recovering RSI and resilient support kept range recovery hopes firmly alive.
