- Cryptocurrency project Chainlink (LINK) is approaching a critical support due to the recent selloff.
- Recently published data shows that the project is losing its long-term HODLers, and gaining mid-term traders.
- The coin has lost more than 50% of its price in less than two weeks in the first half of March, before seeing a slight recovery.
The coronavirus outbreak has caused quite a bit of damage to the cryptocurrency sector earlier in March. Due to the virus-induced fears, many have started liquidating their assets and abandoning crypto for a more stable version of money. However, some assets soon started seeing recovery, while others were not so lucky.
Chainlink (LINK), for example, started approaching its critical support levels, according to crypto analysts. The reason for this is that a large percentage of the coin’s long-term HODLers are selling their supply. Meanwhile, LINK also noticed a sharp rise in mid-term investors.
LINK is losing HODLers
IntoTheBlock’s recent data revealed the drop in a recent announcement, stating that: “LINK currently has 111.8k addresses with a balance in LINK. Of those addresses with a balance: – 18.37% or 20.5k addresses are holding +1y with 672m LINK – 63.5% or 71.02k addresses are holding between 1-12M with 179.9m LINK – 18% or 20.22k addresses hold <1M with 44m LINK.”
The situation turned around quite harshly for Chainlink, which was among the strongest-performing assets in 2019 and early 2020. The arrival of the market-wide selloff caused it to break numerous other supports while spiraling down towards the critical one.
Chainlink loses over 50% of its price due to a recent selloff
At the time of writing, the coin sits at the 14th spot on the list of largest cryptos by market cap, with a current market cap of $791.9 million. At the same time, its price sits at $2.26, after seeing a 0.42% decline in the last 24 hours. However, before the market crash, the coin’s price was significantly higher, sitting at $4.84 on March 5th. In other words, LINK saw a price drop of more than 50% in less than two weeks, reaching its lowest point in the last 30 days on March 16th, when it hit $1.63 before seeing a recovery to $2, and then going slightly above this level.
The $2 level is one of its strongest supports, while $2.30 has been acting as a powerful resistance over the last ten days since the coin hit its lowest point.
A Twitter user going by the name of @TeddyCleps summarized the coin’s downfall in a tweet, saying: “Chainlink: Support (1) Brutally broken. Support (2) Brutally broken and rejected upon retest. Support (3) On its way. If we get a good reaction, will build a position there.”
#CHAINLINK | $LINK— TEDDY • ₿ • (@TeddyCleps) March 25, 2020
Support (1) Brutally broken
Support (2) Brutally broken, and rejected upon retest
Support (3) On it's way
If we get a good reaction, will build position there pic.twitter.com/g7SHFrCKk0
LINK’s community on Twitter is trying to encourage one another and convince people to not give up on the coin. However, it is undeniable that LINK is currently seeing a difficult period.