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The market volatility increases as the price of Bitcoin falls. The market is also under pressure as the Mt. Gox repayment plan begins. As the defunct crypto exchange begins to pay its creditors back by releasing a large amount of BTC back into the market, the price of altcoins has also taken a hit.
As a result of this move, recipients are attempting to sell, putting additional selling pressure on the market. The liquidation of over $300 million of crypto positions in a relatively short period exacerbated the drop. Furthermore, Germany liquidated around $175 million worth of Bitcoin, and the US has also been selling, driving prices down.
Chainlink (LINK) price analysis
The LINK price was $12.51 at press time, a decrease of almost 13% over the past seven days. The entire altcoin market, which is identical to this one, has been impacted by the significant price declines that have occurred over the past few weeks.
Chainlink is under selling pressure but has managed to maintain support. However, most investors are worried whether the price of LINK is correcting itself or if it is just the beginning of further growth for Chainlink.
At the moment, the price of LINK crypto currently trades below its 200-day Moving Average, which is negative, and it is also trading even lower than its 50-day Moving Average. This is a key denominator in solidifying the claim that Chainlink has a short-term bearish outlook.
If Bitcoin price plunges toward registering $52,000-level losses, it would not only prompt wide selling pressure in the market but also result in LINK en route to dropping below $10. Analysts and whales alike closely monitor Chainlink prices, with some predicting a $100 price jump by 2025.
If we examine the on-chain data further, 78.59% of the holders are investing in the $0–$1k range. Investors should closely monitor LINK’s key levels and market trends before investing in the token.
Bitcoin is preparing for the next leg up; if markets deteriorate, the LINK price could plunge by $5. A decline in the price of Chainlink ($LINK) to $11 will be accompanied by an increase in selling pressure and a test of support at that level. Technical indicators like the RSI and moving averages would indicate a correction.
On the flip side, LINK could face strong resistance if these factors turn bearish and slump back toward $9.50; as a result, market optimism or new strategic partnerships may see it through to earnestly break above $15. The RSI movements indicate a bullish trend, and the presence of moving averages of buy signals would suggest an additional increase.
However, if Chainlink can maintain these support levels and a return in market sentiment is evident, its price may rise to resistance around $20-$25. If it continues to exhibit a favorable trend, LINK has the potential to retest its previous cycle high of $22.31 and advance toward $30, as per the Chainlink forecast.
However, this is contingent upon the broader market conditions and adoption rates. Bullish trends are characterized by the price level exceeding both the 50-day and, more specifically, the 200-day moving averages. However, the cryptocurrency market is extremely unpredictable; therefore, investors should only risk capital they can afford to lose.