The price of Chainlink’s native token, LINK, has been on a downward trend over the past 7 days, resulting in a loss of 6.25%. This negative performance is due to increased selling pressure, which has broken through the first primary support level and is heading towards the next support level. The asset trades below the 200-Day and 50-Day Simple Moving Averages (SMA), indicating a bearish sentiment in both short and long-term trends. Traders and investors should consider strategies that align with a bearish market outlook. Social sentiment indicators show negative conversations or a lack of enthusiasm among investors towards LINK.
This article originally appeared on www.newsbtc.com
Chainlink (LINK) is currently under bearish strain as selling pressure mounts in the cryptocurrency market. LINK, which is a decentralized oracle network, has seen its price drop from an all-time high of $52.88 to the current price of $19.88 at the time of writing. This represents a major decline of over 62% in just a few months.
The market for cryptocurrencies has been volatile in recent weeks due to concerns over regulatory action and the impact of environmental concerns on Bitcoin mining. This has led to a significant sell-off in cryptocurrencies, and Chainlink is no exception. LINK has been hit hard by this sell-off, and many investors are now wondering if it is time to sell or hold on to their positions.
The bearish strain on LINK can be seen in the technical indicators. The Relative Strength Index (RSI) for LINK is currently at 42, which is a bearish signal. The Moving Average Convergence Divergence (MACD) indicator also shows a bearish trend, with the MACD line below the signal line.
In addition to the technical indicators, there are also fundamental factors that are contributing to the bearish strain on LINK. One of these factors is the recent announcement by China that it will be cracking down on cryptocurrency mining and trading. China is a major player in the cryptocurrency market and this announcement has had a major impact on the market as a whole. As a decentralized oracle network, Chainlink is not directly impacted by this announcement, but the overall market sentiment has been negatively affected.
Another factor contributing to the bearish strain on LINK is the recent hack of the Poly Network, which is a DeFi platform that uses Chainlink among other blockchain technologies. The Poly Network hack resulted in the loss of over $600 million worth of cryptocurrencies, including Chainlink. Although LINK was not the primary target of the hack, the incident has shaken investor confidence in the security of the blockchain technology.
Despite these challenges, Chainlink remains a promising cryptocurrency with a strong team and growing adoption. Chainlink has been integrated into a number of blockchain platforms and has partnerships with major companies such as Google Cloud and Oracle. These partnerships are expected to drive adoption of Chainlink and increase its value over time.
In conclusion, Chainlink is currently under bearish strain as selling pressure mounts in the cryptocurrency market. However, the long-term prospects for Chainlink remain optimistic, and investors should consider holding on to their positions or even buying more LINK at the current discounted price. As always, it is important to do your own research and seek professional advice before making any investment decisions.