💥 Chainlink Price Falls 3.5% as Altcoin Selloff Intensifies

LINK, the native cryptocurrency of decentralized Oracle network, Chainlink, is down 3.5% on Thursday, to currently trade at $8.62 mark. The move aligns with a broader risk-off rotation away from altcoins following the significant hacks on a Solana-based DeFi protocol. While the falling Chainlink price signals the continuation of its near-term sideways trend, a substantial accumulation from its reverse protocol signals a high conviction for LINK's potential recovery.

🔸 Chainlink Adds $1.17M LINK Despite Market Weakness

On April 2nd, the crypto market witnessed a notable downtick of 2.2% which pulled its market cap to $2.3 trillion. Escalating U.S.-Iran tension significantly weighed on market sentiment as despite Donald Trump’s claim of ongoing war coming to end but offered no concrete plan to reopen the Strait of Hormuz.

In addition, the selling pressure in the altcoin market accelerated further as a Solana-based drift protocol suffered a security breach, resulting in the theft of approximately $285 million in digital assets. The move triggered capital outflow from the broader DeFi sector and major altcoins like LINK.

The reserve has two key sources: the fees paid by large companies that utilize Chainlink services outside of the blockchain, and the fees paid on the network when the Chainlink is actively used.

🔸 Chainlink Price Nearing Bearish Breakdown from $7.7 Floor

Over the past two weeks, the Chainlink price showcased a bearish reversal from $10 psychological level to current trading value of $8.2, registering a loss of roughly 15%. This pullback displayed with a series of lower high and lower low formations with sufficient surge in trading volume indicated sustained selling pressure in the market.

If the current momentum persists, the Chainlink price could plunge another 10% and retest the bottom trendline of current consolidation trend at $7.77.

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