- Chainlink’s price has dropped 4% on Aug 24.
- The drop appears during a broader crypto market correction.
- Nonetheless, LINK could rally in the remaining of Q3/2023.
YEREVAN (CoinChapter.com) — Chainlink (LINK) price is down today, retreating under the influence of a selloff incurring elsewhere in the crypto market.
On Aug 24, the LINK price dropped 4% to $6.11, wiping out the gains it had secured in the previous daily session. The plunge appeared in sync with a similar downside move across the crypto market, wherein Bitcoin (BTC), Ethereum (ETH), and other assets jointly wiped 1.71% off their spot market valuations.
Why is the Chainlink Price Down Today?
Macroeconomic catalysts have influenced crypto markets lately, with investors awaiting Jerome Powell’s economic outlook at the annual Jackson Hole symposium on Aug 25, 1005 EST.
Hawkish Fed Expectations
Notably, the Federal Reserve Chairman will also give clues on the outlook for interest rates. In the run to Powell’s speech, Fed Bank of Boston President Susan Collins signaled that more rate hikes are necessary.
Her views coincided with a selloff across riskier assets, including tech stocks and cryptocurrencies. Meanwhile, the US bond yields surged on rate hike clues, which, in turn, helped the US dollar index (DXY) rise nearly 0.5% on Aug 24.
LINK appears to have come under fire from the Fed’s potentially hawkish stance.
Support Range Consolidation
From a fractal standpoint, Chainlink’s price drop is part of its prevailing consolidation trend.
The LINK price has been stuck in the $6.10-6.43 trading range since Aug 17. It underwent a similar sideways trend in the same range last month. That shows that traders have been taking short-term profits near the range resistance of $6.43 while entering the LINK market at $6.10.
Chainlink Whale Distribution
From an on-chain perspective, the LINK price decline on Aug 24 has come after a considerable whale dump.
Notably, the Chainlink supply held by addresses with a 1 million-to-10 million LINK balance (brown) has declined by 0.37% from August’s top. Meanwhile, its successive cohort, whales with a 10 million-to-100 million LINK balance (black), has remained flat throughout the month.
That shows most LINK whales dumped the token in August, suggesting their bearish bias for the coming session.
Chainlink Technical Analysis Q3 2023
Technically, as of Aug 24, the LINK price treads near a support confluence comprising of a historical accumulation range (the redded area in the chart below) and an ascending trendline. In addition, the Chainlink token’s daily relative strength index (RSI) is near 33.50, raising prospects of an oversold rebound.
A decisive rebound from the support confluence could have the LINK price eye $6.92 (the red horizontal line) as its primary upside target by the end of Q3/2023.
In 2023, traders have been the most active near the $6.92 level, according to its Volume Profile Visible Range. Additionally, the level coincides with LINK’s key exponential moving averages (50-day and 200-day) and a descending trendline resistance.
Nonetheless, a strong break below the support confluence could invalidate the bullish setup. In turn, the LINK price could drop toward the $5-5.50 range.