Chainlink (LINK) is showing increasing signs of weakness as selling pressure builds across the broader crypto market. The asset has dropped sharply in recent sessions, triggering concerns of a potential plunge to $8 if current support levels collapse.

At the time of reporting, LINK had increased by 0.53% in the last 24 hours to trade at $13.71. The market downturn is seen in the price action, which has triggered nearly $700 million in liquidations. LINK has had difficulties since last week, and now it sits below its 50-day moving average at $14.79, dropping 13.34%.

Crypto analyst Ali reports that Chainlink might enjoy temporary support at $12.30, which is the bottom line of the current trading channel. But if support fails, LINK might fall significantly and could fall towards $8. The current stock prices would drop by 41% if this occurs.

Source: Ali-Chart

Chainlink has declined since May 27 because it could not overcome the resistance at $16.19. The failure at that step caused prices to lose strength and go down for the following sessions. On Saturday, LINK dropped to $13.40, which is the lowest level it’s been at since early May.

Also Read: Ripple CEO Slams Bitcoin at IMF, Says XRP Is Future of Global Payments

Chainlink’s Ecosystem Grows Despite Market Downturn

Despite the ongoing price dip, Chainlink continues to push forward on the development front. The network celebrated its sixth anniversary since its mainnet launch, a milestone that came amid several high-profile updates.

Coinbase uses Chainlink’s proof of reserve approach to ensure that $4.6 billion in cbBTC is adequately secured. This increases the usage of Chainlink’s infrastructure among a growing number of institutions.

CCIP (Cross-Chain Interoperability Protocol) was upgraded to v1.6 in May as part of Chainlink’s improvements. It allowed the integration of different blockchains outside of EVM, starting with Solana, and helped add support to 57 more networks.

Also, using Chainlink, JP Morgan successfully traded tokenized U.S. Treasuries through Ondo Finance. This action showed that the bank used Chainlink for the first time to connect its private blockchain to the larger public network.

Chainlink has reached a critical moment, and $12.30 plays an essential role in support. If support is broken below $16, this may suggest the price will head down toward $8.

Also Read: Analyst Spots XRP Pattern Hinting at Another Massive Bull Run Soon

The post Chainlink’s Technical Breakdown Raises Alarms as Market Conditions Worsen appeared first on 36Crypto.