The US government reignited market attention after moving 98,590 LINK, worth approximately $768,000, to Coinbase Prime from wallets linked to seized FTX Alameda assets.
The operation has raised concerns about potential distribution since Coinbase Prime frequently serves institutional sales activities.
Although this amount represents only a small fraction of LINK’s circulating supply, government-related movements have historically influenced sentiment in digital asset markets.
The bulls refuse to back down
Despite renewed concerns over potential sell-side activity, Binance traders have maintained a strongly bullish stance on LINK.
Binance Top Trader’s Long/Short ratio reached 2.61, while 72.31% of accounts remained positioned on the long side, compared to just 27.69% holding short exposure.
This imbalance showed that traders continued to bet on recovery rather than preparing for a prolonged decline.
Interestingly, bullish positioning persisted even after weeks of price weakness, suggesting that confidence in higher levels remained intact.
However, heavily leveraged long positions often increase the market’s sensitivity to volatility if support levels fail.
For now, traders appeared willing to absorb the negative headlines and continued to favor exposure to the upside, indicating that sentiment remained stronger than recent price action suggested.
LINK Eye Range Recovery as RSI Improves
At the time of writing, Chain link (LINK) was trading around $7.78 after rebounding from June’s low near $7.34, where buyers stepped in and stopped the latest decline.
The daily chart shows the asset recovering towards key support at $7.95, a level that previously served as the lower boundary of a multi-month consolidation zone.
Meanwhile, resistance remained settled near $9.80, while a higher ceiling was located around $10.85.
The Relative Strength Index recovered to 35.70 after recently dropping near oversold territory, indicating that bearish pressure had eased slightly.
Although the RSI has remained below the neutral level of 50, the indicator suggests that sellers are no longer controlling the market as aggressively as before.
If buyers continue to defend the $7.34-$7.95 region, LINK could attempt a broader recovery towards higher resistance zones.
Liquidation Trends Reveal Declining Downside Aggression
Derivatives data showed a clear imbalance between short and long positions despite the recent volatility.
Total short liquidations reached around $57,270, while long liquidations stood at nearly $5,040 during the last session.
The significantly higher short liquidations suggest traders betting against LINK were caught out of the game as the asset attempted to recover from recent lows.
Several exchanges posted heavier losses among short positions, reinforcing signs of a tightening of short positions during the rebound.
Binance alone accounted for around $38,350 in short liquidations, compared to around $3,930 in long liquidations.
The gap highlighted that short sellers faced far greater pressure than long holders, even as uncertainty surrounding the government-related transfer persisted.
At the same time, the relatively low level of long liquidations indicated that bullish positions remained largely intact, allowing long positions to remain in control while market participants reassessed directional risks.
Final summary
- Government-linked LINK transfers reignited sell-off fears, but trader confidence remained high.
- RSI recovery and resilient support kept range recovery hopes firmly alive.
