As a seasoned crypto investor who has weathered numerous market cycles, I must admit that the recent bearish pressure on Chainlink (LINK) is a bitter pill to swallow. Having witnessed the token’s meteoric rise and subsequent stabilization around the $13-$14 range, this sudden 23% plunge within 24 hours feels like a cruel twist of fate.
Chainlink experiences setbacks as its token mirrors the general market trend of bearish influence. As per CoinGecko, the token has dropped by approximately 23% over the past 24 hours, which translates to a substantial decrease in value following a period where the price had been steady between $13 and $14.
In the near-term and mid-term, the cryptocurrency market is being shaped by external factors. The apprehensions from the private equity sector are seeping into the crypto market, causing what was initially a correction to turn into a full-blown selloff.
What’s In It for Chainlink?
LINK’s specialized role in providing real-time price data to its partners has experienced turbulence due to the latest significant market fluctuations, which suggest that the token is not effective at creating or retaining any monetary worth.
In a recent update on X, someChainlink enthusiasts expressed doubt about the token’s LINK connection to the platform’s latest advancements potentially impacting the crypto sphere.
Latest news on capital markets: Notable German corporations such as Mercedes and Siemens, along with other significant businesses, are experimenting with Commercial Bank Money Tokens (CBMT).
“According to the PoC, it’s possible that robots might receive automatic payment for tasks completed for various businesses or clients using digital tokens.”
— Chainlink (@chainlink) August 2, 2024
“User X commented that they’re curious about how the $Link token connects to everything here, as it was the token that initially supported your project up until now. They want to understand how this token generates or captures value.”
As someone who has been deeply immersed in the digital asset world for quite some time now, I can confidently say that the $Link token plays a pivotal role in my professional journey. From its early days, this token was instrumental in providing the necessary funding to kickstart various projects and initiatives that have led us to where we are today.
— TT & FUD Farmer (@TTLinkie3299) August 2, 2024
Despite the skepticism of the follower base in Chainlink, the organization continues to receive positive news at the start of the month. Last week, Concero, a blockchain infrastructure platform, announced its selection of Chainlink’s CCIP for “secure cross-chain interoperability.”
Additionally, Concero became part of Chainlink’s Build Partnership Program. This affiliation offers them superior access to Chainlink services, ensuring the high-quality data flow they will receive is reliable.
Introducing Rivalz AI, a new member joining the Chainlink Build ecosystem, referred to as the “first AI intelligence layer”. This innovative tool is designed to enhance the security of Chainlink’s AI-based data network. As part of the Chainlink Build program, which operates on a reciprocal basis, Rivalz has allocated 3% of its token supply for stakers and providers within the Chainlink community. This allocation serves as an attractive incentive for potential Chainlink stakeholders.
Nonetheless, persistent selling actions have been impacting Chainlink significantly, counterbalancing the allure of the recent developments within its expanding Build initiative.
On the platform, there was a significant reduction, approximately 20%, in the amount of cryptocurrency that had been staked, as reported by DeFiLlama. In other words, Chainlink saw a decrease of around 20% in its Total Value Locked (TVL).
More Losses In The Short To Medium Term For LINK
If the token price drops significantly past its October 2023 level where it currently stands, LINK can expect to sustain further losses in its present location.
In simpler terms, it’s advisable for bulls to hold their ground at the $8.3 support level to establish stronger positions for the future. Yet, the present atmosphere of apprehension and unease might make it challenging for them to recover previously lost gains.
As an analyst, I would advise a cautious approach for investors and traders, given the potential continuation of the downward trend that initiated during the corrective phase we witnessed last week.
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2024-08-05 16:35