Chainlink Price Action Slows Down Amid Bearish Sentiment

Chainlink's (LINK) price action slowed down on Tuesday as it faced resistance near $9.56, after rallying over 14% last week.

The weakening derivatives metrics suggest that bullish momentum may be losing steam, with CoinGlass' long-to-short ratio for LINK reading 0.76 on Tuesday, nearing its lowest levels in a month.

A ratio below one indicates bearish sentiment among traders, as they bet asset prices will fall.

Additionally, Chainlink's funding rate flipped negative, reading -0.0050% on Tuesday, indicating that short traders are paying longs and reflecting a bearish bias.

However, institutional demand remains strong, with spot LINK ETFs recording an inflow of $2.07 million on Monday, marking its largest single-day inflow since July 22.