Chainlink (LINK) price has seen a significant drop, mirroring broader market downturns. Currently, LINK is trading beneath important support levels, signaling a strong bearish trend. Technical analysis further confirms the presence of bearish momentum, with the price facing pressure at key resistance levels.
Chainlink Price in Freefall: What’s Behind the Drop?
The crypto market is seeing substantial price drops, with major digital currencies like Bitcoin now trading below $61,000. Ethereum has also faced a decline, falling under the $2,300 mark. These sharp reductions create a ripple effect across the altcoin markets, influencing other cryptocurrencies, including LINK.Â
The token is currently experiencing a notable decline, indicating potential volatility in the market. At the time of writing, the LINK price is $10.59, down 5% over the past 24 hours and 13% in the past week. The cryptocurrency saw a 24-hour low of $10.39 and a high of $11.14, according to Coinmarketcap data.
Can LINK Price Hit $7 Support Level Soon?
Chainlink price may initially stabilize around $10.00 as market sentiment weakens. A continued downward trend might push it to $8.00. Under extreme conditions, it could potentially retreat to $7.00.
The 4-hour technical indicators for the altcoin show significant bearish signals. The Moving Average Convergence Divergence (MACD) has been trending below the signal line and remains in negative territory, enhancing the bearish outlook.Â
The Relative Strength Index (RSI) is currently at 30, well into the oversold territory. This could typically indicate a potential for price reversal or a slowdown in the rate of decline.
Recent Santiment data shows a notable decline in whale activity for the token as large transactions above $100k have decreased significantly. This decline aligns with a consistent drop in LINK’s price over the past months.Â
The Chainlink price peaked around $18 in mid-May and now hovers just above $10. Whale transactions saw spikes in mid-May and late August, but overall, the downtrend in activity correlates with diminishing market value. Reduced whale transactions indicate waning interest or selling pressure, contributing to the overall bearish sentiment in the market.
If bulls manage to regain momentum, the Chainlink price forecast could rebound from oversold conditions, potentially breaking resistance levels around $11.00. However, sustained recovery will depend on broader market sentiment and renewed interest from large investors, including whales.
Frequently Asked Questions (FAQs)
Key support levels to watch are around $10.00 and potentially $8.00, with an extreme scenario suggesting a drop to $7.00.
A decline in whale activity and large transactions suggests reduced interest from high-stake investors, contributing to the bearish market sentiment.
If bullish momentum returns, there could be a rebound from the oversold conditions, potentially breaking resistance levels around $11.00.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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