Chainlink‘s price has been under intense pressure in the past few weeks due to ongoing concerns about the crypto industry. After reaching a peak of $22.85 in March, the LINK token has entered a deep bear market, plunging by almost 50%. It has been hovering near its lowest point since November 2023.
Crypto winter fears rise
Chainlink price has continued its downward trend as investors remain concerned about the state of the crypto market. A big fear among participants is that we could move into another prolonged crypto winter, as we saw between late 2021 and December 2022.
The price has dropped with other cryptocurrencies, such as Bitcoin, Ethereum, Solana, and Cardano, which have all entered a bear market.
This crash happened even as the role of Chainlink in the crypto industry continued. Over the years, Chainlink has become the biggest oracle for platforms in the decentralized finance (DeFi) industry.
It has also become a crucial part of the fast-growing industry of Real World Asset (RWA) tokenization. For example, it has partnered with well-known companies like Blackrock, Swift, and ANZ Bank.
Last week, the network partnered with Sygnum to provide NAV data for Fidelity’s $6.9 billion money market fund. That was a landmark use case for tokenized assets, an industry Standard Chartered hopes will move to over $30 trillion in the next asset.
Therefore, the LINK price has tumbled because of the ongoing sell-off in the crypto industry. In most cases, altcoins crash when Bitcoin is not doing well, especially now that it has entered a bear market.
Still, there are two main potential catalysts for the Chainlink price. First, there are signs that whales are buying the dip. Data shows that 90 wallets have withdrawn LINK tokens worth over $86.7 million from Binance in the past few weeks. That is a sign that these wallets are holding it for the long run.
Second, Chainlink could be the next big token to have ETF applications. If the Securities and Exchange Commission (SEC) approves spot Ethereum ETFs, Chainlink and Solana will likely be the next ETF applications.
Chainlink fits the bill because of its utility, large market cap of over $7.6 billion, and high liquidity, with over $400 million daily volume.
Chainlink price forecast
The daily chart shows that the LINK price is in trouble after it failed to move above $19.22 in June. It has now retreated and formed a death cross pattern, where the 200-day and 50-day Exponential Moving Averages (EMA) crossed each other. In most cases, this is one of the most popular bearish patterns in the market.
Chainlink is also hovering at an important support level that it has failed to move below several times. Therefore, the outlook is still bearish. The next point to watch is $10, which is about 20% below the current level.
