Chainlink Drops 9.12% Amid Bitcoin Selloff, Support at $13

Chainlink (LINK) has experienced a significant reversal in its price trend, following a broader market decline during mid-day trading. This downturn has raised concerns among investors about the token's ability to reclaim its position among the top 10 largest digital currencies. The LINK price has dropped to $14.1, marking a 9.12% decrease over the past 24 hours. This selloff has sparked questions about the potential floor price for LINK.

The steep drawdown in Chainlink's price is closely tied to the selloff in Bitcoin, which was triggered by recent US Core PCE figures. LINK has seen more pronounced selloffs compared to most other altcoins in the top 20, based on percentage decline over 24 hours. Despite this recent downturn, LINK has shown resilience on longer timeframes, with a 1% increase over the past 7 days and a Year-to-Date (YTD) growth of 34.76%. This performance has led analysts to speculate about the possibility of further selloffs.

The LINK/USDT 4H Chart provides insights into the Chainlink price outlook. Currently, the price is trading at the lower Bollinger Bands, at $14.04. The significant deviation from the upper bands indicates intense volatility, which could either benefit or hinder the token's performance. Over the past 30 days, the LINK price has not dropped below $13, suggesting that this level may serve as the next support level to monitor.

The broader market is divided on the future prospects for Chainlink. As an Oracle service provider, Chainlink remains a popular choice among institutional clients for blockchain protocols. The adoption of its services is influenced by market conditions and external factors. Additionally, the price movements of Bitcoin and other altcoins play a crucial role in determining Chainlink's potential rebound. At the time of writing, the price of BTC has fallen to a new weekly low of $83,872.69, down by 3.77% in 24 hours. Analyst Peter Brandt has suggested that a further crash in Bitcoin's price to $70,000 is not out of the question. Given Chainlink's dependence on Bitcoin, the altcoin may continue its current trend until Bitcoin initiates a new rally.

One major catalyst for LINK's price is its recent partnership with the Abu Dhabi Global Market (ADGM). This collaboration aims to support the development of compliant frameworks for tokenized assets, expand blockchain adoption, and promote regulatory dialogue within the UAE and globally. Earlier projections suggested that this partnership could drive the token's price to a high of $44. However, the current price action signals a more cautious outlook for the protocol.