It will be a bearish end to the week for cryptocurrencies as Bitcoin, Ether, XRP, and other major altcoins are currently in the red. Bitcoin’s price has dropped below the $97k level, while Ether is still holding above $3k.
LINK, the native coin of the Chainlink network, has lost 10% of its value in the last 24 hours and now risks dropping below $14.
LINK dips below $15 despite positive news from the ecosystem
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LINK’s poor performance over the last 24 hours comes despite positive news from the broader Chainlink ecosystem.
On Tuesday, Chainlink launched the Rewards Season 1, marking a major milestone as it expanded the Build Program.
The Rewards program allows eligible LINK stakers to earn token rewards from nine Build projects by allocating non-transferable reward points known as Cubes.
These participants began allocating Cubes on November 11, and the program will last till December 9. Token claims will commence on December 16 under a 90-day linear unlock schedule.
This initiative is a bullish event for LINK in the long term as it allows users to deepen participation in the Chainlink ecosystem and strengthen demand for LINK via staking incentives and increased on-chain activity.
In addition to that, Chainlink’s on-chain and derivatives data show a bullish bias despite the current bearish price action. Santiment’s Social Dominance metric for Chainlink currently supports a bullish outlook.
The index rose from 0.15% on Saturday to 1.89% on Wednesday, the highest level since July 2022.
While the rise indicates growing investor interest and increased community engagement around Chainlink, it hasn’t translated to higher prices for LINK.
According to CoinGlass, LINK’s OI-Weighted Funding Rate data shows that the number of bearish traders is lower than bullish ones.
The metric flipped to a positive rate on Tuesday and stood at 0.0032% on Thursday. The positive metric could signal recovery for LINK in the near term.
LINK could recover if the $13.5 support level holds
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The LINK/USD daily chart is bearish and efficient as Chainlink has lost 10% of its value in the last 24 hours. It has lost the $16 key support level and is now trading at $14.2 per coin.
If the lower trendline continues to serve as the support in the near term, LINK could recover towards the $16 support-turned-resistance region.
However, the support level at $13.5 has to hold in the near term for LINK to have opportunities to recover.
The Relative Strength Index (RSI) is 38 on the daily chart, approaching the neutral 50 level and suggesting a strong bearish momentum. For the recovery rally to be sustained, the RSI must recover above the neutral level.
Furthermore, the MACD hasn’t shown a bullish crossover since the start of the week, supporting the current bearish price action.
However, if the bulls fail to hold the $13.5 support level, LINK could extend its decline towards the next daily support level at $11.1.
