Despite Ripple’s Chainlink partnership, the value of LINK has dropped by 10%
The price of LINK has dropped by 10% in the last 24 hours, reflecting the decline of the broader cryptocurrency market. This price drop will help bring the new RLUSD stablecoin on-chain following Ripple's integration of the Chainlink Standard.
At press time, LINK is trading at $20.77. His technical and on-chain configuration confirms the presence of additional failures, and this analysis explains how.
Chainlink will experience a double-digit drop as the bearing becomes stronger
On Tuesday, digital payment service provider Ripple confirmed its partnership with Chainlink. The collaboration aims to provide reliable and accurate price information for RLUSD transactions on Ethereum and XRP Ledger.
However, the news of this merger failed to positively impact the LINK price. The price has dropped by 10% in the last 24 hours.
What's more, LINK's double-digit price drop has created negative variance with the increase in trading volume. In the last 24 hours, the token's trading volume has reached a total of $1.06 billion, an increase of 28%.
When asset trading volume increases during a downturn, it indicates higher market activity as more participants sell, perhaps due to panic or profit taking. This indicates strong bearish sentiment and hints that the downtrend may continue.
Additionally, negative readings from LINK's price daily active address (DAA) divergence indicate low demand for the altcoin. At press time this is -56.61%.
This metric measures the price movement of an asset against the change in daily active addresses. When the value is negative during bearish price action, it indicates weakening activity on the chain alongside bearish price action. This indicates that demand or value for the asset has decreased, reinforcing the downward trend.
LINK Price Prediction: Drop below $20 or rally above $30?
LINK is moving slightly above the support created at $18.53 on the daily chart. If the current downtrend continues, this support level will be tested. If it fails to hold, LINK's price could drop further to $15.81.
However, if the broader market sentiment improves and LINK stock continues, the price may move above $22.54 and towards the $30 price zone.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
