Chainlink price suffered a harsh reversal in early trading as part of the overall meltdown in the cryptocurrency industry. LINK is trading at $14.70, which is 20% below yesterday’s high of $18.45. Other currencies are also struggling, with Bitcoin, Ethereum, Bitcoin Cash, and Stellar falling by more than 16%, 22%, 23%, and 23%, respectively.
What happened: Cryptocurrencies had an excellent weekend, with the top ones rising by more than 10%. This happened as investors continued being optimistic about demand in the industry.
Today’s cryptocurrencies have dropped because of profit-taking. In fact, in the past few weeks, we have observed the prices of currencies rising during the weekend and then suffering a pullback in the first days of the month.
Also, the cryptocurrencies are dropping because of the overall strong dollar due to the rising number of cases in China and Europe. The dollar index has risen by more than 0.34% today. In the past, the dollar and other assets like Bitcoin and gold tends to have an inverse relationship.
On the daily chart, we see that Chainlink price soared to $18.45 yesterday. This price is slightly below its all-time high of $19.95. It was also the highest it has been since August last year. (Read our previous LINK prediction)
Today, it has also moved slightly below the important support at $16.39, which was the highest point on November 24. It is also slightly above the ascending black trendline.
Therefore, while Chainlink price trend is bullish, there’s a possibly that it will drop as bears target this support at $14.00. The price will then bounce back during the week, with bulls aiming for the ATH level at $19.95.
