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Linear Finance (LINA) down 25% despite improving market sentiment – here’s why

By:
on Oct 20, 2023
Updated: Jun 6, 2024
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  • LINA maintains a bearish structure, losing around 25% within the past month.
  • The project maintains a downward trajectory despite enhanced market sentiment.
  • Nevertheless, a broad-based market rally can rescue LINA from the downsides.

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Linear Finance (LINA) exhibits a bearish outlook following a prolonged downtrend. The altcoin lost around 25% of its value in the last 30 days. LINA has deteriorated despite various positive cues in the crypto market, including a potential rate hike pause by the Fed and the spot Bitcoin ETF debate.

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LINA 1-month chart on Coinmarketcap

Linear Finance seems to have suffered more compared to other cryptocurrencies. For instance, Bitcoin gained over 10% within the previous month despite financial obstacles such as the Hamas-Israel war.

Why is Linear Finance crashing?

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Linear Finance is a decentralized network that allows its users to access multiple assets, including commodities, crypto, and indices. It uses LINA as its native coin. The token serves various roles within the protocol, including acting as collateral for stablecoin LUSD mining.

Meanwhile, LINA has witnessed consistent declines, currently trading at $0.008313. The persistent price dip has triggered worries among the cryptocurrency community. Nonetheless, various factors have contributed to Linear Finance’s woes.

LINA’s trajectory darkened on 21 September after it suffered a hack. The perpetrators infiltrated the protocol and attacked the network’s stablecoin LUSD.

While they assured users of the safety of their accounts, freezing assets catalyzed uncertainty about the protocol’s security.

Further, the global financial downtime dented crypto prices. These developments have profoundly dented Linear Finance’s outlook, significantly plunging the token’s price.

Meanwhile, the LINA community waits for clarity as developers investigate the latest attack, hoping for the best amidst the current turmoil.

LINA’s potential future

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While LINA exhibits a bearish outlook, it showcases the struggle projects endure within the crypto market. Nevertheless, increased security will likely boost investor confidence and attract more crypto enthusiasts to Linear Finance.

Also, the crypto market seems ready to explode amid ongoing spot Bitcoin exchange-traded fund optimism. As I wrote here, BTC has adopted a bullish stance, climbing to explore the $30K mark.

BTC daily chart on Coinmarketcap

Continued bullishness by the leading crypto will welcome substantial recoveries within the altcoin market, possibly rescuing LINA from its current turmoil.

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