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Chainlink (LINK) could be staring down a significant price drop if potential support levels fail to hold. According to crypto analyst Ali, LINK may find short-term support at the lower boundary of its current trading channel, around $12.30. However, if LINK fails to hold that level, it may risk a trip to $8, a nearly 41% drop from its current levels.
"LINK could find support at the lower boundary of this channel around $12.30. A break below this level, however, could open the door for a drop to $8," Ali wrote.
The broader crypto market is extending its sell-off in the early Saturday session, with nearly $700 million in liquidations hitting traders across major assets. LINK has been caught up in the sell-off, falling from recent highs while exhibiting signs of slowing momentum.
Chainlink has steadily dropped since May 27. Attempts to rebound met resistance at $16.19 on May 29, with the declines continuing. At the time of writing, LINK was down 5.2% in the last 24 hours to $13.71 and down 13.34%.
The drop has caused Chainlink to return below its daily moving average of 50 at $14.79, reaching lows of $13.4 in the early Saturday session, a level not seen since May 7.
Chainlink updates
Chainlink yesterday celebrated six years since its launch on the mainnet. In recent news, Coinbase will be utilizing Chainlink proof of reserve to increase the transparency of $4.6 billion worth of cbBTC reserves.
The CCIP v1.6 upgrade went live on the mainnet in May, introducing support for non-EVM blockchains, starting with Solana mainnet. In addition, the v1.6 upgrade enables CCIP to rapidly expand its chain coverage to meet the expanding demand for cross-chain interoperability. CCIP currently supports over 57 blockchains on mainnet and has integrated 26 networks this year.
Earlier in May, JP Morgan completed its first transaction on a public blockchain involving tokenized U.S. Treasuries on Ondo Finance, using Chainlink to connect between private and public networks.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team