Chainlink’s Price Plunge: Is It Time to Panic or Just a Dramatic Pause?

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As Bitcoin, that ever-elusive digital currency, decided to take a leisurely stroll below a crucial support level of $95.5k earlier on Monday, Chainlink, or LINK as it likes to be called, was not far behind in this grand parade of bearish sentiment. Currently, it’s lounging at a rather unimpressive $16.20, which is about as exciting as watching paint dry on a rainy day. 🥱

In the past 24 hours, LINK has taken a nosedive of over 7 percent, trading at approximately $16.29 during the mid-New York session on February 24. It seems that the large-cap altcoin, with a fully diluted valuation of about $16.3 billion and a 24-hour average trading volume of around $544 million, has decided to retest a crucial support level of about $16. This level, mind you, is as significant as the 0.618 daily Fibonacci Retracement, which sounds fancy but is really just a number that mathematicians like to throw around at parties.

If this current support level fails to hold, which it probably will because that’s how these things go, LINK might just continue its bearish waltz towards the support range between $13 and $15. However, if it manages to close above the resistance level around $26, we might just see a rally that could take it back to its all-time high of around $53, which was set during the 2021 crypto bull rally. But let’s not hold our breath, shall we?

$LINK: I’ve made a slight adjustment to the long-term chart. The price has room to hold the yellow scenario down to $14. If this level breaks, a test of the yellow support zone in a broader wave (ii) becomes likely. The white scenario carries significantly higher risk, as it…

— More Crypto Online (@Morecryptoonl) February 24, 2025

Chainlink Whales: The Great Disappearing Act

In a shocking turn of events, the overall demand for crypto assets has plummeted faster than a cat off a hot tin roof, especially after the inauguration of US President Donald Trump. It appears that crypto traders, who were once engaged in the thrilling game of buy-the-rumor, have now taken to selling the news like it’s going out of style.

According to the ever-reliable on-chain data analysis from IntoTheBlock, the number of Chainlink transactions greater than $100k has dropped by a staggering $484 million in the last seven days. On February 18, there were about 322 LINK transactions greater than $100k, but now we’re down to a mere 103 transactions. It’s like watching a party dwindle down to just the awkward uncle who won’t leave.

Perhaps, just perhaps, Chainlink whales are biding their time, waiting for the asset to retest the lower border of a macro rising trend before they decide to re-enter the fray. Or maybe they’re just off enjoying a nice cup of tea somewhere. Who knows?

$Link giga Whales haven’t been interested in buys since price left the $12s.

$12s is the Long term Channel low. If we get there, it will be interesting to see if that’s where they decide to re-accumulate as the market falls into a deep Panic and BTC forms a bottom.

— J11 (@LinkWarLord) February 24, 2025

Robust Development: The Silver Lining

On a brighter note, the Chainlink network has morphed into a robust ecosystem, backed by a plethora of institutional investors and top-tier web3 projects. As reported by Coinspeaker, Chainlink products, including the Cross-Chain Interoperability Protocol (CCIP), have been adopted by numerous DeFi projects, proving that not all is lost in the crypto universe.

In the latest update, Etherisc, a DeFi platform on the Ethereum (ETH) network focused on trading Parametric insurance, has decided to adopt Chainlink Functions on the Avalanche (AVAX) network. This is particularly noteworthy as Etherisc will use Chainlink Functions to power parametric crop insurance for over 5,000 farmers in Kenya, among other nations. Because who doesn’t want to insure their crops with a blockchain, right? 🌾

🧑‍💻 Here are crypto’s top overall coins by notable development activity the past 30 days. Directional indicators represent each project’s ranking rise or fall since last month:

➡️ 1) @dfinity $ICP 🥇📈 2) @chainlink $LINK 🥈📈 3) @optimism $OP 🥉📉 4) @cardano $ADA➡️ 5)…

— Santiment (@santimentfeed) February 24, 2025

Meanwhile, the market analysis platform Santiment has revealed that the Chainlink network was the second largest by overall development in the last 30 days. This development activity is a measure of how committed the core developers and other smart contract developers are, which is a fancy way of saying they’re still working hard while the rest of us are just trying to figure out how to turn on our computers.

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2025-02-24 23:35