Chainlink (LINK) has reversed its earlier growth trends following a broader market downturn that sent shockwaves across the crypto industry. The altcoin, which once showed promise of reclaiming its spot among the top 10 digital assets, has now triggered investor concerns as its price plunged to $14.1—a 9.12% drop in the last 24 hours.
Bitcoin Selloff Triggers LINK’s Decline
The steep drop in LINK’s price coincides with Bitcoin’s downward spiral, which was fueled by the latest U.S. Core PCE inflation data. With Bitcoin losing 3.77% over the past day, falling to a new weekly low of $83,872.69, altcoins like Chainlink have suffered even greater losses.
Despite this short-term decline, LINK remains in positive territory on a longer timeframe, maintaining a 1% gain over the past week and an impressive 34.76% Year-to-Date (YTD) growth. However, the sharp decline has raised speculation about whether more selloffs are imminent.
Technical Outlook: Bollinger Bands Indicate High Volatility
A closer look at the LINK/USDT 4-hour chart reveals heightened volatility. The token is currently trading at $14.04, near the lower Bollinger Band. Historically, trading near this level suggests that LINK is either oversold or due for a potential bounce. The key support level to watch is $13, which has held firm over the past 30 days.
Chainlink’s Market Dependency and Institutional Adoption
Chainlink‘s price trajectory remains heavily influenced by Bitcoin and broader market trends. Despite the volatility, LINK continues to be a leading blockchain oracle service provider, with strong institutional adoption.
Recently, Chainlink secured a major partnership with the Abu Dhabi Global Market (ADGM), aiming to develop compliant frameworks for tokenized assets. Analysts previously predicted this partnership could propel LINK’s price toward $44. However, with the current bearish market sentiment, such targets remain speculative.
Also Read: Chainlink (LINK) Price Dips 6% Amid Market Correction – Will Bulls Reclaim $16?
As Bitcoin’s downward momentum persists, legendary trader Peter Brandt has warned of a potential BTC drop to $70,000. If this materializes, Chainlink could see further downside. Until Bitcoin stages a recovery, LINK may struggle to regain its bullish momentum. Investors should watch Bitcoin’s price action closely, as it will likely dictate Chainlink’s next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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