Chainlink price, despite its overt strength, is one example of token that posted major losses over the past day
Chainlink price has suffered a significant loss in the past day. This latest decline marks an extension of the downtrend that it has been capturing for the past few days. Now it has reached a significant level of support that the bulls are trying to protect.
Chainlink price and many Altcoins collapsed before Bitcoin
Chainlink is currently showing some signs of weakness, with sellers cutting deep into the profits the token has posted over the past few weeks. After peaking above $ 8.60, buyers were unable to sustain the upward momentum that guided it higher, with LINK currently trading at key support levels in the $ 7.00 area. Bulls have now tested this support on numerous occasions. Although the reaction at first was extreme, it erased these benefits and retracted this level.
If this support faltered, Chainlink might soon find itself caught up in a strong downtrend. Bitcoin’s trading volume and liquidity have been withdrawn to Altcoins over the past few weeks. This is what has extended its sideways trading time.
However, when the altcoins started cutting down their recent gains, Bitcoin was able to break its tight trading range. It is currently trading above $ 9,400 and is showing strong signs.
Chainlink – which was one of the best performing altcoins throughout 2019 and 2020 – jumped sharply to $ 8.60 last week. From here, it has whirled lower, struggling to gain any clear support from its investor base.
At press time, LINK is trading slightly down nearly 3% at the current price of $ 7.16. Chainlink may suffer some significant losses if it continues to lower.
Analyst Calmly talked about the importance of Chainlink’s current support in a recent tweet, explaining that this might be the best support for buying the dip.
He points to a support area in the range of $ 7.15 to 7.35:
“LINK – I think this is the best support for buying the dip if you think we make another all-time high this week.”
— Calmly | full-time trader (@im_calmly) July 21, 2020
Calmly Chart | Source: TradingView
If this area breaks the decision below – and it looks like this is a strong possibility – then Chainlink may drop before finding any other support.
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