Chainlink Faces Price Dip, But Recovery Signs Emerge
Chainlink’s price has taken a hit this year, falling to $17.4 on Saturday. This represents a 43% drop from its December peak of $30.78. The decline mirrors the broader trend among altcoins, which have also retreated in recent months.
However, there are reasons to believe Chainlink could recover.One key indicator is the falling balances on centralized exchanges. according to CoinGlass data,these balances have dropped to 138.8 million LINK coins, the lowest since September. This suggests that many holders are keeping their coins, rather than selling.
Investors may be optimistic about a potential spot LINK ETF approval by the Securities and Exchange Commission later this year. Such an approval could attract more investors and boost the price.
Chainlink’s position in the crypto industry is another factor. It is the largest oracle network, with a total value secured of $35 billion. Its cross-chain interoperability protocol,CCIP,is also crucial for Real World Asset tokenization.
Technically,Chainlink’s price remains above the 100-week Exponential Moving Averages. The weekly chart shows a megaphone pattern, which often leads to a bullish breakout. If this happens, the price could reach $30, followed by $35. However, a drop below the lower side of the megaphone would negate this bullish outlook.
