LINK correction in progress.
After a brilliant test of the mark $20, the LINK coin has been in correction for a month now. Leading the way among DeFi coins, the widespread use of Chainlink as the oracle of most decentralized finance projects has failed to at least keep the coin in consolidation. As a result, in the form of a gradual correction, sellers managed to lower this coin price to the range $9-10. A month ago, in our previous article we wrote that we are waiting for this correction to see how strong the demand is in the range $9-10.
Buyers show strength, but without active actions.
A gradual correction of the coin over the course of the month showed that the interest in buying LINK is quite high. And it’s despite the fall by 50% from the maximum. In addition, the fall was at increased volumes and was immediately accompanied by a response from buyers.
However, if we compare the local growth of LINK during the stop of the fall on the crypto market with other DeFi coins – the coin looks quite weak.
Taking into account the Defi index composite we see that LINK did not feel as confident as for example LEND or YFI.
Bitcoin strengthening has a bad effect on LINK.
Also, Bitcoin strengthening and its active integration into DeFi projects has reduced the dominance of other DeFi coins, including LINK:
According to the chart, we see that Bitcoin begins to regain its dominance. It is clearly visible on the price charts. For example, yesterday’s update of the local high by bitcoin did not give LINK a push to do the same.
As long as Bitcoin gather strength and new money does not come to the market, the LINK correction will continue. Despite a good buy out of the coin at critical levels, a gradual price fall is possible. The signal to complete the correction will be fixing the LINK price above $14. Though, as we can see, market purchases are not enough to even touch this mark.
The worst-case scenario that is possible within the current correction is the test of $7. And here everything depends on Bitcoin and its ability to fix above $11,000.