The Chainlink price is down sharply as the tragic cryptocurrency correction accelerates. The LINK price is at $31.92, which is 28% below its all-time high of $44.33 that was reached last week. It is also slightly above its intraday low of $30.14. It is still the 12th biggest cryptocurrency in the world.
The background: For starters, Chainlink is a blockchain project that has developed products that connect smart contracts to the real world. It allows developer to build quality and highly scalable applications.
Some of the features it offers are price feeds, verifiable randomness, proof of reserve, and external adapters among others. Most importantly, as shown below, the network allows smart contracts from other blockchain projects like Ethereum and Solana.
Chainlink price action: Like all cryptocurrencies, Chainlink has not been left behind in the ongoing sell-off. LINK has crashed by almost 30% from its all-time high that was reached last week. This performance is because of the overall crypto sell-off.
As we have covered before, most digital currencies tend to move in sync with one another. Therefore, like we wrote on Litecoin, this performance is because of profit-taking and the overall panic because of low institutional holdings. So, what next for Chainlink?
The daily chart below shows that the Link price has dropped sharply in the past few days. It has moved below the important support at $36.95. It has also dropped below the middle line of the Bollinger Bands. It is stuck at the 50-day exponential moving average (EMA). It remains above the ascending trendline that is shown in red.
Therefore, in my view, the bullish trend is still intact. However, a drop below $28 will be the danger zone. This price is along the ascending trendline and the 100-day moving average. If it moves below this level, it will signal that bears have prevailed.
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