The price of Chainlink has experienced a significant decline over the past three months, resulting in a market cap reduction of $10 billion, dropping from $18 billion to $8.8 billion.
Chainlink (LINK) fell to $13.52 amidst the persistent sell-off in the cryptocurrency sector. Bitcoin (BTC), the market leader, saw a decrease from $109,300 in January to $82,000.
Despite these challenges, LINK has several potential drivers that could elevate its price in the near future. Current sentiment data indicates a bullish attitude of 93.2% from the community, suggesting that a large number of users remain hopeful about the cryptocurrency. This enthusiasm notably surpasses that of Jupiter (JUP), which holds a sentiment score of 88%.
Additionally, Chainlink has continued to improve its network in 2024. Developers have recently introduced a new system called Chainlink Payment Abstraction, which allows cross-chain payments aimed at minimizing friction within the ecosystem.
This innovative solution enables users to pay for Chainlink services using alternative assets such as stablecoins, which are automatically converted to LINK. This conversion process utilizes Chainlink Automation, price feeds, and a decentralized exchange, with an initial focus on fees generated by the Chainlink Smart Value Recapture mechanism.
Chainlink is also well-positioned to gain from the expansion of technologies like decentralized finance and the tokenization of real-world assets. It has formed strategic partnerships with significant entities such as Swift, the Depository Trust & Clearing Corporation, Google, Oracle, BNY Mellon, and JPMorgan.
Technical Analysis of Chainlink Price
The weekly chart reveals that the LINK price reached a low of $11.91 earlier this month. This bottom point is significant as it aligns with its lowest swings since July 2023.
Chainlink has formed a prominent megaphone pattern, which is typically seen as a bullish indicator. Furthermore, it has reached an important support/resistance pivot according to the Murrey Math Lines.
This suggests that the coin may rebound and could potentially retest a significant resistance level at $25, representing an 85% increase from current prices. However, if the price falls below the lower boundary of the megaphone pattern at $11.90, this bullish perspective would be called into question.