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It will be a bearish end to the week for cryptocurrencies as Bitcoin, Ether, XRP, and other major altcoins are currently in the red. Bitcoin’s price has dropped below the $97k level, while Ether is still holding above $3k.
$LINK, the native coin of the Chainlink network, has lost 10% of its value in the last 24 hours and now risks dropping below $14.
$LINK dips below $15 despite positive news from the ecosystem
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$LINK’s poor performance over the last 24 hours comes despite positive news from the broader Chainlink ecosystem.
On Tuesday, Chainlink launched the Rewards Season 1, marking a major milestone as it expanded the Build Program.
The Rewards program allows eligible $LINK stakers to earn token rewards from nine Build projects by allocating non-transferable reward points known as Cubes.
These participants began allocating Cubes on November 11, and the program will last till December 9. Token claims will commence on December 16 under a 90-day linear unlock schedule.
This initiative is a bullish event for $LINK in the long term as it allows users to deepen participation in the Chainlink ecosystem and strengthen demand for $LINK via staking incentives and increased on-chain activity.
In addition to that, Chainlink’s on-chain and derivatives data show a bullish bias despite the current bearish price action. Santiment’s Social Dominance metric for Chainlink currently supports a bullish outlook.
The index rose from 0.15% on Saturday to 1.89% on Wednesday, the highest level since July 2022.
While the rise indicates growing investor interest and increased community engagement around Chainlink, it hasn’t translated to higher prices for $LINK.
According to CoinGlass, $LINK’s OI-Weighted Funding Rate data shows that the number of bearish traders is lower than bullish ones.
The metric flipped to a positive rate on Tuesday and stood at 0.0032% on Thursday. The positive metric could signal recovery for $LINK in the near term.
$LINK could recover if the $13.5 support level holds
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The $LINK/USD daily chart is bearish and efficient as Chainlink has lost 10% of its value in the last 24 hours. It has lost the $16 key support level and is now trading at $14.2 per coin.
If the lower trendline continues to serve as the support in the near term, $LINK could recover towards the $16 support-turned-resistance region.
However, the support level at $13.5 has to hold in the near term for $LINK to have opportunities to recover.
The Relative Strength Index (RSI) is 38 on the daily chart, approaching the neutral 50 level and suggesting a strong bearish momentum. For the recovery rally to be sustained, the RSI must recover above the neutral level.
Furthermore, the MACD hasn’t shown a bullish crossover since the start of the week, supporting the current bearish price action.
However, if the bulls fail to hold the $13.5 support level, $LINK could extend its decline towards the next daily support level at $11.1.