Crypto has come into focus after a major crash in the past few days. Most coins are on free fall, link included. But unlike doom and gloom, a complete crypto collapse is unlikely. LINK in particular has a real chance of halting the downtrend, but it would need to hold a very important support level. Here are some facts to keep in mind:
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LINK dropped almost 40% in two days this week
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The coin has recovered slightly from these losses but is still weak.
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If LINK can sustain the price above $6.10, it could prevent a major decline
Data Source: TradingView
Will there be support?
The big question for most bulls is whether the market has enough confidence to avert another selloff. Risk assets saw a major boost, following the Fed’s commitment to fight inflation with aggressive interest rate hikes. But it is feared that this short term rally is not going to last long.
Therefore, for LINK to maintain the $6.10 support, it will need to survive a drop of at least 10% in the coming days. While it is possible, depending on the overall sentiment in the market, there is still a risk that support could be breached.
If it does, the next strong support will be near the $4.5 level. This would represent a drop of 40% from the current price. But if $6.10 holds and price action consolidates around it, LINK could move above $8 by the end of trading this week.
LINK. Major ecosystem updates for
Although the downtrend has been pretty disappointing in recent weeks, LINK is doing very well in building out its ecosystem. The new betting scheme has already been launched and the project has signed major partnerships.
From a fundamental standpoint, things are looking good for LINK. Now the only thing needed is to change the perception in the broader market.