408 Interactions, 4 today
Although Bitcoin recently reached an all-time high on the charts, the cryptocurrency’s value plummeted the previous week. With BTC dropping as low as $51k on the markets, it’s understandable why altcoins like Chainlink [LINK] saw substantial bearish market activity.
At press time, LINK had fallen to eleventh place on CoinMarketCap’s ranking, with a market capitalisation of $10.35 billion. The altcoin was priced at $24.91 at the time of publication, with the alt hoping to find some stability on the markets.
Chainlink hourly chart
Over the last week, the price of Connection has been steadily declining. In reality, after the 17 March rally, the digital commodity was trading above $30. However, the market was unable to sustain its high price until corrections emerged.
Furthermore, the escalating sell-off has driven the crypto-asset even lower in recent days, with LINK breaking many levels of support. At the time of writing, LINK was nearing the $24 support mark, which had not been broken since February.
On March 25, the price of LINK dropped by 15% in seven hours, increasing market uncertainty while also pushing the digital commodity into the oversold sector.
As the price began to fall from $27, the Bollinger bands diverged, but the Signal line stayed above the candlesticks. At the time of publication, the Bands were already diverging, indicating that, although the price was attempting to find steady ground, the demand remained highly unpredictable.
Furthermore, the 50 moving average has stayed above the market bars, emphasising the price’s downward direction.
The Relative Strength Index also fell below 30, indicating that Connection was oversold. At press time, the RSI value had quickly risen to 38, with the same attempting to reach equilibrium. It should be remembered, though, that the momentum was skewed in favour of the market’s bulls.
Following its precipitous drop, the price of Connection has been attempting to consolidate about $24.50. However, uncertainty and selling pressure were at an all-time peak, making the concept of price stability impossible to grasp. If the selling pressure continues, we can see LINK break through its high support level.