1. Main trend: Selling pressure dominates

• Cumulative Volume Delta (CVD):

CVD Futures is strongly negative at -23.07B, while CVD Spot is -3.52B. This is a clear sign that selling pressure is significantly dominating both the spot and futures markets.

=> Assessment: The downtrend is still prevailing, and sellers control the market in the short term.

2. Trading volume surges

• Futures Volume:

The futures trading volume has surged recently, indicating significant interest from investors in LINK, particularly from short-term traders or speculators.

• Spot Volume:

The spot volume is not increasing correspondingly, reflecting that the capital flow is mainly focused on the derivatives market rather than actual trading.

=> Assessment: The increase in futures volume may cause significant market volatility, caution is needed before large price 'sweeps.'

3. Neutral Funding Rate

• The funding rate is currently slightly positive at 0.01%, reflecting that buying pressure from Long positions still exists but is not sufficient to create significant changes in the trend.

=> Assessment: The Funding Rate is stable but not biased towards one side (Long or Short), indicating that the market is waiting for clearer signals.

4. Liquidation pressure of Long positions

• Long positions being liquidated overwhelmingly compared to Short positions recently. This reflects that the significant price drop has caused many traders expecting price increases (Long) to incur losses.

=> Assessment: The continuous liquidation of Long positions may create opportunities for the market to recover slightly, especially if selling pressure decreases.

5. Open Interest (OI) remains stable

• Open Interest is currently stable around 6.19M - 6.65M, not fluctuating suddenly. This indicates that there is no large new capital entering or leaving the market.

=> Assessment: The market may be in an accumulation phase and waiting for breakout signals.

6. Market sentiment leans bearish

• The Long/Short ratio is currently at 0.9371, indicating that Short (sell) orders are dominating compared to Long (buy) orders.

=> Assessment: Investors currently tend to bet on LINK's price continuing to decline. However, if an unexpected recovery occurs, the liquidation of Short positions could drive prices sharply up in the short term.

Overall assessment

The LINK market in the weekly timeframe is clearly in a downtrend, with key factors such as:

• Selling pressure dominates both the spot and derivatives markets.

• Market sentiment leans bearish (Short).

• Liquidation of Long positions and high futures volume increase the likelihood of volatility.

However, the market maintaining a stable Funding Rate and OI not decreasing sharply may be a sign that LINK is entering an accumulation phase or preparing for a price correction.

Proposed trading strategy

1. For short-term traders:

• Look for Short opportunities when the price retraces to strong resistance areas.

• If a clear recovery signal appears, consider entering a short-term Long position, especially in important support areas.

2. For long-term investors:

• Wait for a clear reversal signal or for prices to touch strong support areas for gradual accumulation.

• Limit trading participation while the downtrend still dominates.

Conclusion

LINK is in a phase of high volatility with selling pressure prevailing. Investors need to be cautious and closely monitor signals from volume, Funding Rate, and Open Interest to make decisions. Remember to manage risk well, especially in such a volatile market.

What do you think about LINK's performance over the past week? Please share your thoughts below this article? $LINK