Government's LINK dump hits Coinbase Prime, but Binance traders say "thanks, more cheap coins" 🚀

The U.S. government transferred 98,590 LINK, valued at roughly $768,000, to Coinbase Prime from wallets tied to seized FTX Alameda assets, reigniting concerns about potential distribution from the seized holdings. Coinbase Prime frequently serves institutional selling activity, and government-linked movements have historically influenced sentiment across digital asset markets. Although the transfer represented only a small fraction of LINK's circulating supply, the transaction drew renewed attention to sell-side risk for the token.

Despite those concerns, Binance traders maintained a strongly bullish stance toward LINK. Binance's Top Trader Long/Short Ratio reached 2.61, with 72.31% of accounts positioned on the long side compared to 27.69% holding short exposure. The imbalance indicated that traders continued to position for recovery rather than an extended decline, with bullish positioning persisting even after weeks of price weakness.

Chainlink [LINK] traded around $7.78 at the time of writing after rebounding from a June low near $7.34, where buyers halted the latest decline. The daily chart showed the asset recovering toward key range support at $7.95, a level that previously served as the lower boundary of a multi-month consolidation zone. Resistance remained established near $9.80, with a larger ceiling around $10.85.

The Relative Strength Index recovered to 35.70 after recently dipping near oversold territory, suggesting bearish pressure had eased slightly, though the indicator remained below the neutral 50 level. If buyers continued defending the $7.34–$7.95 region, the technical setup pointed toward a broader recovery attempt toward higher resistance zones.

Derivatives data showed a clear imbalance between short and long liquidations during the latest session, with total short liquidations reaching approximately $57,270 compared to roughly $5,040 in long liquidations. Binance alone accounted for about $38,350 in short liquidations versus approximately $3,930 in long liquidations, reinforcing signs of developing short-squeeze pressure as LINK attempted to recover from recent lows.