Do Or Die Technical Level For Chainlink Formed After 50% Drop

Do or die technical level was formed for chainlink recently after the 50% drop over the past few weeks and is now trading around $8.50 far below the highest level of $20 as we are reading further in the latest Chain link news.

The cryptocurrency’s correction came after the major altcoin underwent a strong plunge after Ethereum dropped through key supports. Chainlink could become quite vulnerable to a bigger drop as the crypto approaches do or die technical level. One trader noted that if LINK manages to bounce off, it will find support soon enough. This bearish assertion came after a number of analysts said that Chainlink will bottom during the macro timeframe.

One trader thinks that if Chainlink drops lower after dropping over 50% from an all-time high, the strong drop could ensure again. He shared a chart showing that the cryptocurrency is now running up against the crucial level of support that marked the high levels in July. The historical importance of these level suggests that if Chainlink’s token losses support, a strong correction will follow:

 “Yikes. If there’s any short-term saving grace for Chainlink, it’s here imo. A bounce towards $9.50-10 is reasonable.”

This was echoed by other market commentators who noted that the cryptocurrency is coming up close to a “giga” support level which could hold before things get ugly for the asset:

 “Chainlink at absolute Gigasupport. Link marines have an opportunity to save LINK from the giga nuking. Below $8.50 would probably get pretty ugly, as everyone from the last month and a half would be underwater…”

In the past week, Link dropped from the upper boundaries of the range and returned to the lower border. If the sellers push beneath $10.40, the first level of support lies at $10. The movement is followed by the support at $9.00 and $8.00 as well as $7.25. The added support is found at $6.61 and $6.00. On the other side, the resistance lies at $11.62 which is followed by the $12.60 and $13.35. Chainlink’s bottom can be seen from here as the RSI for the coin is bearish and seems to be dropping as well signifying that the negative momentum is increasing. It even has room to drop before getting into the oversold territory.