Chainlink was on a strong uptrend for the past two weeks before the general market crash ended the rally and dragged the coin lower. The past 24 hours marked the third time this year alone that Chainlink’s recovery attempts have been crushed by bears.
Chainlink loses another fight
Up 47.43% since May 28, the altcoin was doing quite well in regaining what the token lost in the May crash. But the unsuspecting decline of the past 24 hours caused the coin to lose a significant portion of this recovery when LINK fell 18.17%.
Trading at $7.6 at the time of writing, the altcoin has lost some of the major gains it has made in a month. First, LINK managed to regain the 50-day simple moving average (SMA) (blue line) that it last tested as support two months ago in April.
Although it failed to retest it as support, it did manage to close above it just before the red candle hit the charts.
Second, LINK also managed to recover the 23.6% Fibonacci level during the 47% rally. This level is essential to provide the altcoin with a strong base from which to bounce in order to reach beyond the $10 mark, which also coincides with the 38.2% Fibonacci level.
A sustained rise would have succeeded in attracting more investors to Chainlink, provided the oracle blockchain is already focusing on the same by rolling out its Price Feeds on Solana.
By integrating with its Dapps, LINK could have easily skyrocketed, but instead it faces the wrath of its panicked investors.
A dump in progress…
In the past 24 hours, LINK investors have sold over $14 million worth of LINK. Part of these two million LINK also belonged to long-term holders who were responsible for the consumption of 4.04 billion days.
Moreover, their decision made sense since almost all of the investors who moved their holdings suffered losses after the drop, which is why the network observed the highest losses ever, to the tune of $212 million.
So, unless this decline is quickly countered, Chainlink investors may continue to dump, making the situation worse for the altcoin.