Why Is Chainlink (LINK) Price Going Down?
The price of a cryptocurrency called Chainlink (LINK) has been falling this week. It seems like more people are selling it than buying it right now.
As of this writing, one LINK coin costs around $12. This is after its price dropped by 7% in just one day. Now, everyone is wondering if the price will stop falling or if it will drop even lower, possibly to $8.
A Key Price Level Was Broken
To understand what’s happening, imagine a floor that has been holding up the price. For LINK, this floor was at $15. When the price is above a floor, it’s a good sign. Traders call this a support level.
But recently, LINK’s price fell right through that $15 floor. When this happens, it’s often a sign that the price might keep going down. The old floor at $15 can now act like a new ceiling, making it hard for the price to go back up. Traders call a ceiling a resistance level.
One expert, Ali Martinez, said that the price might go up to test the new $15 ceiling and then fall down toward $8. Unless LINK can break back above that ceiling, the risk of it falling further is high.
What the Price Charts Are Showing
Other signs on the price charts also look negative for now.
- Tools that track trends are pointing downwards, suggesting that sellers are in control.
- Recently, the price tried to rise but was pushed back down, which shows that not enough people are buying to push the price higher.
Where Could the Price Go Next?
LINK is now getting close to another important price floor. This is an area where the price has bounced up from before.
If the price can stay above this new floor, it might bounce up for a short time. But if it breaks through this floor too, it could open the door for the price to fall even lower, possibly to the $10 or $8 levels.
Is There Any Good News?
Even though things look a bit shaky right now, some people are still positive about Chainlink’s future.
- One expert believes that in the long run, LINK’s price could go up by more than 240% to reach about $47.
- A large investment company named Grayscale is planning to create a new way for people to invest in LINK through the regular stock market. This could make it easier for more people to buy LINK in the future.
What Are Big Investors Doing?
Data shows that some big investors (sometimes called “whales”) have sold or moved millions of LINK coins recently. This can sometimes push the price down.
However, despite the falling price, the team behind Chainlink is still one of the busiest in the crypto world, constantly working on improving its technology.