3 Major Reasons Why Chainlink (LINK) Could Fall by 25%

As a startup, Chainlink solves a significant obstacle that concerns transferring data between blockchains and the real world.

The protocol, whose origins date back to September 2014 – a period when half of the world have not even heard about blockchains and Bitcoin, offered a solution that enables independent data sources to feed information into public ledgers through a decentralized oracle network.

Flash forward to 2020, Chainlink is now part of 315 blockchain projects, including decentralized finance protocols, data providers, blockchain nodes, and whatnot.

Chainlink’s success is also visible in its market capitalization, which has surged to $4.275 billion from $101 million in just two years. Naturally, the upswing has also pushed the price of LINK, Chainlink’s in-house token, higher; it was recently up by more than 17,000 percent since launch.

But despite Chainlink’s growth as an oracle protocol, the performance of its token remains exposed to the supply-and-demand dynamics. The LINK/USD exchange rate topped at $20.71 in August 2020. The pair later experienced a significant sell-off. The move brought its price down by as much as 64 percent – as of September 23.

LINK’s plunge was a product of a bearish technical setup. As usual, the token bounced back, logging a 79.18 percent recovery. Nevertheless, it remained under bearish pressure as a combination of technical and fundamental signals pointed to an extended downside bias among traders.

Here are three reasons why LINK has more room to fall in the coming sessions.

#1 New Addresses

The first bearish setup for…

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