The post Chainlink (LINK) Could Drop To $8 If It Loses Current Support: On-Chain Data Reveals appeared on BitcoinEthereumNews.com.

Chainlink (LINK) has faced significant volatility this week. Its price dropped over 13% from Monday’s high, bringing LINK to a critical support level of around $11.20. Traders and investors are closely monitoring this crucial area. Related Reading The importance of this level is further emphasized by on-chain data from Santiment, which shows that demand for LINK is cooling off. This adds to the uncertainty surrounding the asset’s near-term price action. The next few days will be pivotal as Chainlink hovers around this crucial support. The outcome here could determine whether LINK stabilizes and regains its footing or faces further downside. This level will likely set the stage for LINK’s next major move, making it a critical point of interest for market participants. Chainlink Demand Cooling Off?  Uncertainty and fear are currently driving market sentiment for Chainlink (LINK). Its price is testing a crucial support level amid declining demand. On-chain data from Santiment highlights a weakening market. A negative price-daily active address (DAA) divergence confirms the recent decline in LINK’s demand. This metric compares an asset’s price movements with the changes in its number of daily active addresses, providing insight into whether network activity backs the price action. Chainlink Price-Daily Active Address Divergence. | Source: on-chain data from Santiment   Currently, LINK’s price DAA divergence stands at -61.2%. This indicates a significant disconnect between its price and the number of active users on the network. Such a substantial negative divergence suggests a weakening market and hints at the possibility of further price declines. Related Reading The lack of network activity to support the current price level raises concerns. Traders and investors are worried that LINK might struggle to maintain its position above the crucial $11.20 support. If demand does not pick up soon, LINK could face additional downward pressure, possibly leading…

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Filed under: News - @ August 29, 2024 11:18 am