The Chainlink price after undergoing a giant downswing after facing rejection from the levels just below $10, smashed the lower support below $6 within a couple of days. Meanwhile, the LINK price rebounded finely, but woefully the upper cap was restricted at $7.92 as bears slashed the price further.
But what went wrong with the LINK price? Why it dropped drastically?
Chainlink has been manifesting its strength in the past few months with a giant move from $6 to as high as $9 with a jump of more than 40%. However, the price has slumped heavily after reaching the local highs, it faced acute sell orders as the market participants just let off their holdings, while the launch of Chainlink’s Staking is on the horizon.
One of the reasons, the value plunged down is the divergence between the positive price performance and the existing volumes, which has weakened gradually and a reversal could be just a matter of time.
The main version of staking is not expected to occur in the previous announcement. Hence it raises serious concerns over the ability or inability of the developer to deliver long-awaited products. This may further impact the value of the underlying asset LINK which may remain within a consolidated range to a large extent.
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