💥 The price of Chainlink drops 3.5% as altcoin sales increase

LINK, the native cryptocurrency of the decentralized Oracle network, Chainlink, fell 3.5% on Thursday and is currently trading at $8.62. This movement aligns with broader risk rotation away from altcoins following a major hack on a Solana-based DeFi protocol. While the declining price of Chainlink indicates a continuation of the short-term sideways trend, significant accumulation of the reversed protocol suggests strong confidence in LINK's recovery potential.
🔸 Chainlink Adds $1.17B LINK Despite Weak Market
On April 2, the crypto market experienced a significant decline of 2.2%, bringing its market capitalization to $2.3 trillion. Increasing tensions between the US and Iran significantly affected market sentiment, although Donald Trump claimed that the ongoing war would end soon, without offering a concrete plan to reopen the Strait of Hormuz.
Additionally, selling pressure in the altcoin market intensified as the Solana-based drift protocol experienced a security breach, resulting in theft of approximately $285 million in digital assets. This event triggered capital outflows from the broader DeFi sector and major altcoins like LINK.
Reserves have two main sources: fees paid by large companies using Chainlink services off-chain, and fees paid on the network when Chainlink is actively used.
🔸 Chainlink Price Nears Bearish Breakout Level of $7.7
Over the past two weeks, Chainlink's price has shown a bearish reversal from the psychological level of $10 to the current trading value of $8.2, recording a loss of about 15%. This pullback is marked by a series of lower highs and lower lows with a notable surge in trading volume, indicating ongoing selling pressure in the market.
If current momentum continues, Chainlink's price could drop another approximately 10% and retest the lower trendline of the current consolidation at $7.77.
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