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Chainlink Price Prediction as LINK TVS Slides to $14.3 Billion

Chainlink’s price has seen a strong downtrend over the past few months as concerns over the decentralized finance (DeFi) sector have remained. LINK is trading at $6.13, around 84% lower than the November 2021 high. Its market capitalization has fallen to just $2.3 billion, making it the 23rd largest coin in the world. .

DeFi challenges remain

Chainlink is a leading blockchain project that provides oracle services to developers across all industries. It can be used by those building DeFi products and even those in the non-fungible token (NFT) and gaming industries.

Oracles have an important role in the blockchain industry as they help bring off-chain data to the blockchain. For example, developers can bring stock market data to the on-chain environment. Likewise, it is easy to integrate other off-chain data such as sports scores and weather into blockchain projects.

Chainlink is primarily used by DeFi developers who rely on its price feeds. Therefore, the performance of the LINK price tends to depend on the performance of the DeFi industry.

Learn more about how to invest in Chainlink.

The past few months have been difficult for DeFi and Chainlink. The total value locked (TVL) in DeFi has grown from over $250 billion to the current $73 billion. Most of this decline is primarily due to the collapse of Terra’s ecosystem. At its peak, Terra protocols like Anchor Protocol and Astroport had a TVL of over $30 billion.

As a result, Chainlink saw the Total Secured Value (TVS) in its platform crash from over $60 billion to $14.3 billion. The decline is likely to continue as the cryptocurrency industry goes through turmoil.

Recently we have seen many crypto companies like Celsius, Three Arrows Capital and Voyager Digital go bankrupt. At the same time, the oracle industry is becoming increasingly crowded, with major competitors being WinkLink, Maker, Band, and Pyth, among others.

Check out Chainlink’s long-term price prediction for 2022.

Chainlink Price Prediction

The daily chart shows that the LINK price has been on a strong downtrend over the past few months. It also formed strong support at $5.20, where it has struggled to descend since May. The coin broke below the 25- and 50-day moving averages while the Average True Range (ATR) fell.

Chainlink also formed a large falling wedge pattern. Therefore, since this wedge is not close to its confluence level, it is likely to continue falling. The next key support will be at $4. In the long term, LINK will likely have a bullish breakout.