Chainlink’s native token LINK has been one of the hottest crypto assets this year but that has not helped it escape this week’s big selloff.
Crypto asset markets have dumped $35 billion in terms of total capitalization since the weekend and the sell-off looks set to continue as Bitcoin and its brethren weaken.
A number of crypto assets are retreating from their all-time highs this year and investors are looking for entry points. Chainlink is among them as one of the year’s best performing crypto assets cools off quicker than some of its competitors.
LINK Marines Loading Up
LINK prices have collapsed to their lowest levels for almost two months in a fall back to $7.30 according to Tradingview.com.
There has been a minor recovery today as the token topped $8 again, but it is still massively down from its all-time high in mid-August. Back then the Chainlink token briefly touched $20 but it has been a downward slide ever since resulting in a 60% slump to current levels.
This price zone serves as solid support, however, there may be another dip to the 200 day moving average which lies around the $6.60 level.
Crypto investors have been eyeing the charts and are loading up on LINK which could drive prices back up in the short term. Trader and analyst going by the twitter handle ‘RNB (Crypto Warrior)’ (@CryptoWarrior01), has seen the same chart predicting a bounce back to $10 or $12.
— RNB (Crypto Warrior) (@CryptoWarrior01) September 23, 2020
The sentiment has been echoed by fellow trader ‘MacroLINK’ (@MacroCRG), who has also admitted to becoming a ‘LINK Marine’ and entering at these levels.
Picked up a long term bag of $LINK here.
I will hold this forever.
I am now a fully fledged Link Marine. pic.twitter.com/VlDx2zyeUN
— MacroLINK???? (@MacroCRG) September 23, 2020
Further downsides are expected though if markets continue to bleed as they have done for most of this week. Chainlink’s market capitalization is currently just over $3 billion which puts it ahead of Crypto.com but just below Binance Coin according to Coingecko.
Crypto Market Selloff Accelerates
LINK has not been the only token to suffer, however, it has been in a downtrend for around six weeks.
Bitcoin, which is largely the bellwether for the rest of the market, is holding crucial support just below $10,300 at the time of writing. Failure to hold here will see the asset tumble back into four figures pretty quickly.
Ethereum is also in pain, falling to its lowest level for three weeks and crucial support at $325. Many of the lower cap altcoins, especially the DeFi related ones have dumped 50% since their giddy peaks in recent weeks.