💥 Chainlink price drops 3.5% as altcoin sell-off intensifies

LINK, the native cryptocurrency of the decentralized Oracle network Chainlink, fell 3.5% on Thursday, currently trading at $8.62. This move aligns with a broader risk-averse rotation following a major hack on a DeFi protocol built on Solana. Although the decline indicates a continued short-term sideways trend for Chainlink, significant accumulation from its inverse protocol suggests strong confidence in a potential rebound for LINK.
🔸 Chainlink adds $1.17M in LINK amid market weakness
On April 2, the crypto market experienced a notable 2.2% decline, with the total market capitalization dropping to $2.3 trillion. Tensions between the US and Iran significantly impacted market sentiment, despite Donald Trump claiming that the ongoing conflict is nearing an end, without providing specific plans to reopen the Strait of Hormuz.
Additionally, a security breach in a Solana-based drift protocol further intensified sell-off pressure in the altcoin market, resulting in approximately $285 million worth of digital assets being stolen. This incident triggered broader capital outflows from the DeFi sector and major altcoins like LINK.
The reserves have two main sources: fees paid by large companies utilizing Chainlink services and fees paid on the network when Chainlink is actively used.
🔸 Chainlink approaches $7.7 support with bearish breakout
Over the past two weeks, Chainlink's price has shown a bearish reversal from the $10 psychological level, currently trading at $8.2, representing about a 15% loss. This pullback exhibits a series of lower highs and lower lows, accompanied by a significant increase in trading volume, indicating persistent selling pressure in the market.
If the current momentum continues, Chainlink's price could decline another 10%, retesting the bottom trendline of the current consolidation at $7.77.