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$LINK’s price has declined 10% in the past 24 hours, mirroring the broader cryptocurrency market downturn. This price drop follows Ripple’s integration of the Chainlink Standard to help bring its new $RLUSD stablecoin on-chain.
At press time, $LINK trades at $20.77. Its technical and on-chain setup confirms the possibility of further declines, and this analysis explains how.
Chainlink Faces Double-Digit Drop as Bearish Sentiment Intensifies
On Tuesday, digital payment service provider Ripple confirmed its partnership with Chainlink. The collaboration aims to provide secure and accurate price data for $RLUSD transactions on Ethereum and the XRP Ledger.
However, the news of this integration has failed to impact $LINK’s price positively. In the past 24 hours, its value has dropped by 10%.
Moreover, $LINK’s double-digit price decline has been accompanied by a surge in its trading volume, forming a negative divergence. Over the past 24 hours, the token’s trading volume has totaled $1.06 billion, rising by 28%.
When an asset’s trading volume surges during a price decline, it indicates heightened market activity as more participants sell, possibly driven by panic or profit-taking. This signals a strong bearish sentiment and hints at a likely continuation of the downtrend.
Additionally, the negative readings from $LINK’s price daily active address (DAA) divergence highlight the low demand for the altcoin. At press time, this is -56.61%.
This metric measures an asset’s price movements with the changes in its number of daily active addresses. When its value is negative during a price decline, it suggests weakening on-chain activity alongside the bearish price action. This indicates reduced interest or utility for the asset, reinforcing the downward trend.
$LINK Price Prediction: A Decline Below $20 or a Rally Above $30?
$LINK trades slightly above the support formed at $18.53 on the daily chart. If its current downward trend persists, this support level will be tested. If it fails to hold, $LINK’s price could drop further to $15.81.
However, if the broader market sentiment improves and $LINK accumulation resumes, it could drive its price above $22.54 and toward the $30 price zone.