- LINK is liquidated for a good amount around $20.3.
- The market indicators remain bearish.
All of the coins were in green. Chainlink [LINK] The market has been decoupled.
AMBCrypto decided to examine the state of the token to determine what had gone wrong.
What was the reason for this sudden drop?
Markets gained momentum due to Bitcoin’s [BTC] The price movement. Price action. LINK was the exception.
As per CoinMarketCapChainlink has dropped more than 2,5% over the past 24 hours.
LINK is the fourteenth most valuable crypto at the moment of this writing. It was currently trading for $20.74, with a total market cap of more than $12.17 billion.
AMBCrypto’s Analysis of CryptoQuant data A number of factors played a role in the recent price drop. We found that LINK had a growing exchange reserve.
It meant there was a high level of selling pressure. The number of transactions and active addresses also decreased during this period.
The spike in LINK Exchange Inflow also proved that there was a high level of selling pressure. Although the price of the token dropped, MVRV ratio increased. Velocity also followed the same trend of declining.
Chainlink’s future recovery?
If the drop in price continues, a significant amount of LINK could be liquidated around the mark of $20.39. Liquidation tends to increase when the price drops, and this can cause a further drop in value.
Chainlink needs to remain above this level in order for it to show a rapid recovery. If LINK’s upward trend continues, its first goal should be at $21.
This could allow LINK’s stock to rise in value over the next few days.
AMBCrypto analyzed the daily chart of Chainlink to determine if there was a possibility that investors would see a trend change. Our analysis showed that the MACD could indicate a possible bearish crossover.
Click Here to Read Chainlink’s [LINK] Price Prediction 2024-24
LINK’s Relative Strength Index registered a decline and headed toward the neutral mark. Money Flow Index, which measures the flow of money in and out of a token after a rising trend, also fell slightly.
The technical indicators indicated that LINK could see a price drop further in the coming days.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: ambcrypto.com