Chainlink Faces Bearish Market as Investors Brace for Price Drop
Chainlink’s current market performance reflects an 87.7% price drop from its all-time high of $52.88 on May 10, 2021. Throughout May, the asset has been trading between $6 and $7 and has reached its lowest point at $6. Despite a sideways trend on the daily chart, LINK’s trading volume has decreased by over 32%.
The recent downtrend can be attributed to macroeconomic factors such as inflation, regulatory laws, and investor sentiment. LINK is now in a short and long-term bearish trend, trading below its 50-day and 200-Simple Moving Averages (SMA). Its Relative Strength Index (RSI) confirms this bearish trend as it drops out of the neutral zone to the oversold region of 30. LINK’s Moving Average Convergence/Divergence (MACD) is just above its signal line and displays a negative value.
Though LINK is trading slightly above its nearest support level of $6.362, signals on the daily chart suggest a potential further price drop. But, if a rally occurs, LINK will encounter resistance at the $6.753 and $6.907 price levels.
Chainlink enjoyed an upward trend in 2023, but the current bearish market presents an opportunity for the asset to drop into an oversold region before the bulls rally again. Recent trends on LINK’s network could also affect its price. The NFTFi concept combining NFTs and DeFi solutions adds value and liquidity to the growing NFT market. Chainlink’s adoption of this innovation enables lending and borrowing, where NFT holders lock digital assets as collateral to acquire liquidity for another digital asset.
Additionally, the Chainlink Upcoming Spring Hackathon 2023 is a networking opportunity for developers and coders to exchange ideas and generate innovative solutions. With several categories, such as Artificial Intelligence (AI), NFT and gaming, and DAO, this hackathon could further boost the network’s visibility, utility, and adoption.