- Chainlink (LINK) has plunged to $14.1 amid a broader market selloff, closely following Bitcoin’s price action.
- While short-term volatility remains high, LINK’s strong fundamentals and institutional adoption could fuel a future rebound.
The cryptocurrency market has been in turmoil, and Chainlink (LINK) is no exception. The altcoin has taken a sharp nosedive, testing critical support levels and raising concerns about where its price might bottom out. With Bitcoin (BTC) also facing pressure, LINK’s short-term trajectory appears uncertain. However, its long-term potential remains a topic of interest, especially after securing a high-profile partnership in the UAE.
Also read: Chainlink Leads Altcoin Selloff: Is LINK Headed for a New Low?
LINK Price Drops as Market Volatility Surges
At the time of writing, LINK is trading at approximately $14.1, marking a 9.12% decline in the last 24 hours. This drop has outpaced the losses of most other top-20 cryptocurrencies, fueling speculation about whether further declines are imminent.
On a broader scale, LINK has still managed to stay in positive territory for the week, up by 1%, and its Year-to-Date (YTD) gain remains strong at 34.76%. This suggests that while short-term selling pressure is high, the asset has maintained resilience over time.
Technical Analysis: Bollinger Bands Signal High Volatility
Examining LINK’s 4-hour chart, the token is currently trading at the lower Bollinger Band at $14.04. This deviation from the upper bands indicates heightened volatility. Historically, such movements can precede either a bounce or a deeper pullback, making the $13 level a critical support to watch.
Over the past month, LINK has not fallen below this mark, reinforcing it as a key floor. Should the price dip further, this level may serve as a strong defense zone before any potential recovery.
Bitcoin’s Influence on LINK’s Trajectory
The fate of LINK remains closely tied to Bitcoin, which has dropped to a new weekly low of $83,872.69, declining 3.77% in 24 hours. With Bitcoin’s price action often dictating market sentiment, analyst Peter Brandt has even suggested BTC could slide to $70,000.
If BTC continues its downturn, LINK’s bearish momentum may persist. Conversely, a Bitcoin rebound could act as a catalyst for a LINK recovery.
Conclusion: Long-Term Prospects Remain Strong
Despite short-term volatility, Chainlink remains a strong player in the blockchain space, particularly with its increasing adoption by institutional clients. While market conditions currently weigh on its price, LINK’s long-term fundamentals suggest that once broader recovery begins, it could reclaim lost ground. Investors should keep a close eye on support levels and Bitcoin’s movements to anticipate LINK’s next major move.
