With the end of November rapidly approaching, it’s critical to assess how the market’s altcoins are performing in order to acquire a sense of direction. Especially as the end of the fourth quarter approaches.
Chainlink’s situation is particularly intriguing in this perspective. Unlike many other cryptos, altcoin hasn’t exploded in popularity. Instead, it’s reminiscing about the past.
Chainlink has two levels of support: the historical level at $24.55 and the monthly pivot at $23.25, which appear to be holding or at least reducing the selling pressure for the time being. As sell-side activity increases, the LINK price is expected to fall further.
The key support levels are now likely to be breached. Expect further downside pressure to $21.62, the historical August 5 low that was also met in September.
Along the path lower, profit-taking may cause a pause in the sell-off, finally culminating to a make-or-break moment as bears try to breach $21.62.
While there may be a bounce off that level at first, it will very certainly be followed by a break below, which will result in a major acceleration as sidelined bears try to join the falling bandwagon. The move could result in a 30 percent drop in the value of the dollar.
Chainlink spiralling down
Despite being an interoperable and fully integrated chain, the coin has slid from position #15 to position #19 at press time due to a lack of growth. Understandably, this has harmed the company’s investors.
Since the average holding time of LINK is 2.7 years, velocity has been steadily decreasing. This is why tokens aren’t traded all that often. As a result, Long Term Holders now own 27 percent of the total LINK supply.
Active addresses are becoming weaker by the day, as HODLing has become the natural state of investors. In addition, after the price drop, their percentage of balance addresses has dropped to 0.64 percent.
Finally, since May, persistent active LTH selling has resulted in an increase in supply on exchanges.
All of these factors have combined to explain why Chainlink’s network growth and market value have been so low. Over the previous ten days, the latter has decreased by 33%, returning to levels seen in May.
And, until the LINK market resets, the price will most likely remain near the $25 support line. If it continues to decrease, the cryptocurrency may soon tumble out of the top 20.