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Chainlink's (LINK) Market Performance Shows Unexpected Tendencies

Fri, 03/03/2023 - 17:00
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Arman Shirinyan
Thousands of traders getting liquidated after Silvergate turmoil as most assets are plunging massively, but LINK is still solid
Chainlink's (LINK) Market Performance Shows Unexpected Tendencies
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The correction the majority of investors have awaited since mid-February is now facing problems after prominent crypto bank Silvergate is facing a massive sell-off.

Chainlink aims high

Chainlink (LINK) has been showing exceptional resilience in the midst of the current crypto market turmoil, as it remains the only asset moving in an upward trend. Despite the 8% plunge that occurred in the past 24 hours, LINK has remained bullish and even recovered slightly, currently trading at $6.87 at press time.

Source: TradingView

The market has been experiencing liquidations worth $240 million, leading to panic among investors who are looking to de-risk their portfolios. However, Chainlink's ability to continue its uptrend suggests strong underlying market sentiment for the asset.

Moreover, LINK has been experiencing high inflows, as reflected in its trading volume, which reached 3.8 million LINK on Feb. 21. After the plunge to $6.6, the LINK market saw a spike in trading volume that has most likely contributed to a 3% recovery.

Cardano faces some issues

Cardano, the third-largest cryptocurrency by market capitalization, has fallen below a crucial support level, indicated by a 50-day moving average. The 50-day moving average had been serving as a guideline for Cardano's price movement, but the asset has now dipped below the level once again. This latest breakdown confirmation came after the recent panic on the market caused by Silvergate crypto bank's failure to submit its annual report by March 16, leading to a drop in many cryptocurrencies, including Cardano.

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The 50-day moving average is a widely followed technical indicator used by traders and analysts to identify market trends. It represents the average price of an asset over the past 50 trading days and is considered an important support and resistance level. The moving average acts as a guide for the asset's price movement, with prices typically above the moving average indicating an uptrend and prices below indicating a downtrend.

Cardano previously dipped below the 50-day moving average in February, but the breakdown confirmation came after the recent market panic. The 5% plunge caused by the Silvergate panic has accelerated the breakdown and caused Cardano's price to drop below the crucial support level. This could indicate a continuation of the downtrend for Cardano in the near future.

Shiba Inu finally finds volatility

Shiba Inu's burn rate spiked to 200% compared to yesterday due to the recent volatility on the crypto market caused by the turmoil at Silvergate. This news has caused concern among Shiba Inu investors, who are now wondering what the future holds for the popular meme token.

The burn rate is a key metric for Shiba Inu, as it measures the amount of tokens that have been removed from circulation. A higher burn rate indicates that more tokens are being removed, which can potentially increase the value of the remaining tokens in circulation. However, the recent spike in the burn rate of Shiba Inu might not be a positive development, as the volatility spike has been aiming downward.

The token's burn rate is not the only metric that investors should be paying attention to; other factors, such as market sentiment and liquidity, could also play a role in the token's future performance. Unfortunately, the asset has been seeing a higher pressure.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.