LINK/USD touched $7.40 after extreme sell-off pressure saw it tumble from highs of $20
ChainLink’s price action has been one full of bleakness over the past few weeks, recent sell-off pressure sending LINK/USD to lows of $7.40. With Bitcoin and the rest of the cryptocurrency market looking weak as of writing, it also appears ChainLink could be in for a continuation of the downtrend if bulls fail to consolidate above $8.00.
Last week’s massive capital flight meant LINK/USD edged further away from it’s all-time high around $20 reached in August as its integration in the DeFi space peaked. Yesterday, the price dropped more than 12% to see it touch a new six-week low. The token is also more than 20% down over the past week, and nearly 58% off its peak.
Despite the downtrend, ChainLink is the top gainer among the top 20 largest cryptocurrencies in the market. LINK/USD is at the time of writing over 400%up on its price since the crypto market crash of March.
LINK/USD technical picture
Most coins are still seeing red, but ChainLink is turning green on the daily chart, with bulls likely to break $8.50 to strengthen its detachment from the rest of the market.
After LINK/USD lost its $9.00 support peg, sellers matched almost unimpeded to crack another major support level around $8.00. The freefall threatened to crash any bullish hopes of retaining support at critical levels that would make establishing a quick rebound to $10.00 in the short term easily achievable.
A look at the daily chart shows that if LINK/USD breaks above the 20-EMA at $10.60, a run to the 50 MA around $13.00 would help confirm a bullish reversal. In between, the 23.6% Fibonacci retracement level at $11.25 presents a notable
