Chainlink (LINK) Faces Potential Drop to $8 Support
- Chainlink risks price drop to $8 if support breaks.
- $10–$10.52 is a crucial support level.
- Increased whale transactions suggest market volatility.
Main Content
Chainlink (LINK) is at risk of a substantial price drop, with on-chain metrics indicating vulnerability. LINK is currently trading around $11.16, amidst a 50% year-to-date decline. Approximately 8,000 addresses are holding LINK in the $10.52 range. If this support breaks, LINK could potentially descend to $8, reflecting increased market pressure.
Surging Whale Transactions Indicate Market Volatility
The potential decline in LINK’s price could create volatility in cryptocurrency markets. Whale transactions have surged, suggesting further fluctuations. Such price movements can significantly affect investor confidence, potentially impacting related DeFi tokens that rely on Chainlink’s infrastructure.
Analyst Commentary: “If support at the $10–$10.52 band fails, LINK faces high likelihood of a rapid test of the $8 zone.”
Historical Support Breaches Led to 20–40% Declines
Historically, breaches in support levels for LINK and other cryptocurrencies have led to sharp declines. Similar events have resulted in drawdowns between 20–40%. Based on technical analysis, if the $10 band fails, experts anticipate a price drop to $8 as the most likely outcome given current circumstances.
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