The Chainlink price has struggled recently. LINK is trading at $27, which is 14.2% below last week’s high of $31.40. Its market cap has dropped to $11.1 billion while its ranking among all cryptocurrencies has fallen to 11.
What happened: Chainlink has grown from a relatively small altcoin to become one of the biggest in the world. The network helps developers connect their smart contracts to the real world. It connects them to the Internet of Things (IoT), payment solutions, and cloud computing, among other areas.
Most importantly, it is used in the Decentralized Finance (DeFi) industry, where its price feeds help platforms like Aave, Synthetic, and Celsius, among others.
Recently, though, the Chainlink price has struggled as demand from traders has waned. Its social media mentions has declined while the number of people searching for it in Google has declined, as shown below. In its place, other fast-growing altcoins like Theta, Terra, and Filecoin have become more popular.
Also, it seems like the DeFi industry has peaked, with the total value locked (TVL) remaining below $45 billion, according to DeFi Pulse.
A look at the four-hour chart shows that the Chainlink price has been under pressure lately. The stock formed a triple-top pattern at $31.63 and today, it moved slightly below the neckline of this pattern at $26.32. It remains slightly below the 25-day and 15-day moving averages.
Therefore, the outlook at this stage is neutral. If the price manages to move substantially below the support at $26.32, there is a possibility that it will keep falling and possibly retest $25. However, there is also a possibility that the currency will rebound as bulls target the upper side of the channel at $31.63.
