Will Chainlink gains come undone as crypto market collapses under rumors?


  • Chainlink price climbed above $9.20 for the first time since August 13, a three month high despite volatility in crypto. 
  • The rise in LINK price is supported by a large amount of Chainlink address activity. 
  • Analysts retain a bullish outlook on Chainlink as the altcoin breaks past key resistance at $8.40.

Chainlink price hit a three-month high despite the ongoing uncertainty and volatility in crypto. Rumors of Samuel Bankman-Fried’s FTX exchange’s insolvency have increased the selling pressure on cryptocurrencies in general. Yet Chainlink has defied the negative sentiment and decoupled from cryptocurrencies to break past the $8.60 level. 

Also read: JUST IN: As US midterm elections draw close, Bitcoin worth $3.15 billion floods exchanges

Chainlink hits three-month high despite mass market volatility 

Chainlink, a decentralized blockchain oracle network on Ethereum is used to facilitate the transfer of tamper-proof data to on-chain smart contracts. Chainlink price climbed above the $9.20 level for the first time since August 13. LINK hit a three-month high despite crypto market volatility. 

The rise in the altcoin’s price has been supported by an increase in active address activity over the last five weeks. 

Chainlink address activity

Chainlink address activity 

The current volatility in the crypto market and the bearish sentiment among holders comes from rumors that Samuel Bankman-Fried’s exchange FTX is experiencing a bank run. Crypto influencers and critics argue that FTX has been pushed to the brink of a debt crisis. The exchange has witnessed outflows of $1 billion over the last few days. 

SBF’s comments on how DeFi needs regulation and his blueprint for regulators have sparked the ire of the broader crypto community. Once the draft of the Senate Agriculture Committee’s Digital Commodities Consumer Protection Act (DCCPA) bill was leaked online, SBF’s stance on the issue became clear. SBF pointed regulators towards DeFi entities and platforms, deflecting their interest in regulating centralized crypto exchanges. 

What’s more, Alameda, a leading principal trading firm, owned by Bankman-Fried and headed by Caroline Ellison, witnessed a decrease of 47% in its on-chain balance in the last month. Most of the funds of SBF-owned Alameda were deposited to FTX exchange and Genesis, a major crypto lender. 

Jack Niewold, founder of Crypto Pragmatist believes the FTX exchange is insolvent, with massive outflows and increased selling pressure on FTT, the native token. Binance and large wallet investors are offloading their FTT in favor of USDT, USD or BUSD as the crypto community bands together to safeguard DeFi from regulatory policies. 

Changpeng Zhao, the CEO of Binance told his Twitter followers that the sale of $584 million worth of FTT is a risk management measure. CZ argued that Binance wants to avoid an implosion like that of Terra’s LUNC (previously LUNA) and UST. 

FTT price nosedived 23% overnight and FTX exchange is drowning in multi-billion withdrawals over the past few days. This uncertainty has pushed crypto prices lower and Chainlink decoupled from cryptocurrencies to lead the pack with 23% gains in two weeks. 

Analysts are bullish on Chainlink, predict continuation of uptrend

Sheldon Sniper, a crypto trader and technical analyst believes Chainlink price has bullish potential. The expert noted that Chainlink price broke an 18-month weekly trend and is ready to target the $12.60 and $16 levels. 

LINKUSDT price chart

LINKUSDT price chart

The $8.40 level is key resistance for Chainlink, and a break past this level would provide confirmation of a bullish breakout. If Chainlink price fails to sustain above the $8.40 level, it will invalidate the bullish thesis and the asset will continue its decline along the 18-month trendline. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP