Chainlink (LINK) Plunges to Yearly Low of $8.4 – Should You Bag More Now?

Due to widespread panic sell-offs, the general crypto market has been down since Friday, dropping over 13% in the past 24 hours. Consequently, the price of BTC dropped to $50,000.

The Chainlink (LINK) token wasn't left out of this bleeding, as the price hit a new yearly low of $8. As LINK's bearish momentum builds, key indicators signal a potential decline to $5.4.

Given the bearish outlook, is it time to buy LINK? The analysis below evaluates the current market sentiment and uses vital technical indicators to identify LINK's next possible price moves to help you decide.

Chainlink (LINK) Price Movement

LINK has fluctuated between $12.73 and $18.68 since April. Bearish sentiment pushed the price to $11.07 in early July, followed by a brief upswing to $15 on July 21.

However, the price quickly receded, with Chainlink (LINK) dropping 10% in three days following profound panic sell-offs in the broader market.

LINK's price hovers around $8.3, with a 28% decline in the past 24 hours. According to CoinMarketCap, the bearish movement extends to the weekly timeframe, with LINK down 40.2% over the past week.

Chainlink is now below the $10.5 support level. This region could be crucial in the coming days. It might act as a support, potentially triggering a price change.

The sudden reversal has instilled fear among LINK holders, who now question the token's short-term prospects. However, despite the recent dip, the chart shows potential in LINK, and the current price might offer a good entry point.

Consider the technical analysis below to better understand LINK's potential future direction.

LINK Price Analysis: Technical Indicators Signals Caution

LINK trades below a bearish trendline, with several technical indicators suggesting intense selling pressure. The Moving Average Convergence/Divergence is below its signal line, with red histogram bars showing the bears are in charge.

In addition, LINK's price is also well below the Bollinger Bands, indicating extreme selling momentum and high volatility.

The Relative Strength Index (RSI) is 20, signaling oversold conditions. It could also mean the bearish trend might continue. The SuperTrend indicator is flashing a sell signal. Moreover, large red volume bars show high-selling activity.All these factors paint a bearish picture for LINK in the short term.

Should You Buy LINK Now?

Despite the bearish signals, there's potential for a reversal. LINK could trigger a bounce if it holds above the $5 support level. Additionally, breaking the bearish trendline might shift market sentiment.

Investors face a tough decision. Waiting for the price to drop to $5 could offer a better entry point, but there's no guarantee it will reach that level. Those considering buying should watch these key levels closely and consider their risk tolerance.

Chainlink Realized Cap Decline: A Warning Sign for Investors

According to data, Chainlink's Realized Capitalization, a metric showing the difference between realized profits and losses, has dropped from 75.51 million to 11.14 million.

A rising Realized Cap usually signals investor accumulation at low prices. However, LINK's declining Realized Cap suggests a revaluation. Short-term holders are selling to those with stronger convictions.

Historically, such declines often lead to long consolidation periods or significant price drops. If this trend continues, LINK, currently trading at $12.49, might face further decreases.

This could cause investors to lose confidence, triggering more sell-offs. The reduced Realized Cap might also deter new investors, limiting potential price recovery.

In addition, data from Glassnode shows more LINK tokens being sent to exchanges. This means that more people are ready to sell their LINK tokens.

When exchange deposits surge, it usually indicates that market participants expect the price to drop. Such a situation could trigger increased selling pressure and further price declines for LINK.

However, amid the widespread market uncertainty, Pepe Unchained (PEPU) presents a potential diversification opportunity for those seeking LINK alternatives.

Pepe Unchained Shines Amidst Crypto Market Gloom

Pepe Unchained (PEPU) has amassed substantial funds while the crypto market bleeds. The PEPU presale is nearing $7.5 million, attracting the attention of investors.

Pepe Unchained's unique approach sets it apart from other meme coin projects. Some pundits believe PEPU's price could explode once it hits the open market.

Why Pepe Unchained Stands Out?

Pepe Unchained aims to revolutionize the meme coin space by building an Ethereum-based Layer-2 blockchain for faster and cheaper transactions.

Notably, the network promises to be 100 times faster than Ethereum. PEPU offers attractive staking rewards, with an estimated 265% annual yield.

This combination of speed, low fees, and high rewards draws investors. Moreover, the project is building a robust community, with over 4,600 members on its Telegram channel. Also, PEPU ranks second on CoinSniper's list of potential crypto projects to watch.

Pepe Unchained's presale continues to grow; each PEPU token currently trades at $0.008875. Popular crypto influencers and YouTubers are talking about Pepe Unchained. A well-known crypto influencer, Austin Hilton, described PEPU on X as a huge" project.

Pepe Unchained combines the popularity of the Pepe the Frog meme with real utility. Its revolutionary Layer-2 solution offers substance beyond typical meme coin hype, placing among the biggest memecoins in 2024.

Ready to join the Pepe Unchained revolution? Visit the Pepe Unchained Presale now and be part of the next big thing in crypto.

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