- Weakening network activity and low user engagement are key factors pressuring LINK’s price towards potential declines below $10.
- Technical analysis highlights the risk of further downside for LINK as key support levels are tested amidst broader market weakness.
Following a recent CNF update on Chainlink securing two new partnerships and integrations, questions arose about the potential impact on LINK’s price surge. Currently, Chainlink (LINK) has been struggling to maintain its momentum since the second quarter of the year, facing increased selling pressure and uncertainty.
With network activity weakening and technical indicators pointing to potential further losses, LINK’s ability to hold above critical support levels is under scrutiny.
Here’s a look at the factors that could drive Chainlink’s price below $10 in the coming days: (1) Low Network Activity: Chainlink (LINK) is facing challenges as its price diverges from daily active addresses, indicating weakening user engagement and potential for further decline. (2) In/Out of Money Indicator: Analysis shows that many LINK addresses are at a loss, with a significant number of purchases around $10.52, suggesting limited support and potential for a price drop to $9.72.
Lastly, (3) Technical Analysis: LINK recently broke out of a bearish pennant but failed to maintain gains, indicating possible further declines unless broader altcoin market conditions improve.
As of today, according to CoinMarketCap data, Chainlink (LINK) is trading at $10.79, having surged by 3.40% in the past day but decreased by 9.17% in the past week. With the three factors mentioned above, it is expected that Chainlink could further push below $10.
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