Chainlink (LINK) closed last week with a dragonfly Doji candlestick, showing indecision after bouncing from a key support level above $9.3. As a mid-cap altcoin with a fully diluted valuation of $10.3 billion and an average daily trading volume of $170 million, LINK has been trying to regain bullish momentum in recent weeks.
On the daily chart, LINK has formed a double bottom pattern with a bullish divergence on the Relative Strength Index (RSI). Despite this setup, there’s still a chance LINK could fall further toward $8, the breakout level from October 2023.
The market is closely watching. Let’s discover what’s next.
Data from Santiment reveals a drop of nearly 2,000 non-zero addresses on the Chainlink network in the past four weeks.
This trend reflects the challenges faced by the altcoin market, worsened by weak performance from Bitcoin and Ethereum ETFs in the U.S., which has drained liquidity from the crypto space.
While the U.S. Federal Reserve has hinted at a possible interest rate cut on September 18, uncertainty over the upcoming elections continues to weigh on market sentiment. The altcoin sector, including Chainlink, has been struggling over the last five to six months due to these broader economic concerns.
Despite these challenges, the Chainlink community remains strong, with the network seeing new integrations across various DeFi projects. Over the past week, projects like Ambit Finance, Euler Labs, JOJO Exchange, Tadle, and zkLend have partnered with Chainlink to improve cross-chain interoperability.
These partnerships set the stage for a potential LINK price recovery. The long-awaited altseason could materialize once Bitcoin’s dominance decreases, likely in Q4 or early next year. Additionally, Chainlink-related discussions on social media have hit an all-time high, suggesting rising interest in the project as the market begins to stabilize.
Read Also: Is Altcoin Season Starting? Analyst Reveals Rare Buy Signal & Bitcoin Dominance Drop
The future of LINK is uncertain, but the potential for a turnaround is huge. What do you think?
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