By Billie Harvill
Bitcoin and Ethereum lost over 8% and 6%, respectively, within one day and saw investor sentiment dampened. Though most assets in the top 100 experienced a massive hit on respective charts, some experienced more selling strength than others. Santiment data shows Chainlink (LINK) as one of the tokens with enormous “strong and oversold” conditions.
Bearish Actions
While writing this content, LINK ranked 26th in the cryptocurrency list by market capitalization, changing hands at $10.67. The altcoin dropped around 10.75% within the past day and 12.50% in the previous seven days. Nevertheless, Chainlink experienced surging volumes at this publication. Historically, the alt has seen dramatic volumes increase after price plummet, and the trends seemed to showcase again.
Exchanges Front
The exchange metric shows Chainlink exchange supply maintained sideways actions, though with brief outflows. That matches Santiment’s “strong” rating, as it indicated massive panic selling was yet to take place. Nevertheless, most parts of April saw bearish momentum.
Meanwhile, like what the volume metric showed, it is clear that Chainlink’s active addresses usually rise following price declines. Though this happened after the recent crash, daily users have declined since the 2021 summer. That isn’t a healthy signal for the alt as it indicates faded investors’ interest and adoption rates.
TradingView’s RSI indicator for Chainlink shows the altcoin remained in a neutral region, which is approaching oversold conditions. The alt might increase its reversal chances and launch another upsurge amid such occurrences. Nevertheless, market players should act cautiously as red candlesticks seem here to stay.
Moreover, LINK price will likely rely on broad market sentiments. For now, bears appear to dominate the spectrum. The latest downswings destroyed the optimistic setup in most assets. While publishing this content, the market capitalization of all digital assets stood at $1.65 trillion, reflecting a 0.33% drop within the past day.
Also, LINK has a high correlation with Bitcoin. BTC remained weak and susceptible to more downswings. While writing these lines, Bitcoin traded near $36,067.76, battling bearish tendencies. Some market experts trust the bellwether crypto can drop further to $30K. Such developments will mean massive plummets in Chainlink, erasing upside hopes.
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