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Chainlink Faces 22% Drop Risk, Litecoin Sees 17% Monthly Decline Amid Crypto Volatility

Coin WorldWednesday, Mar 12, 2025 4:27 pm ET
3min read

Litecoin (LTC) and Chainlink (LINK) are currently experiencing significant price volatility, with analysts predicting further corrections before potential reversals. LINK's price has been declining, approaching the bottom of its megaphone pattern, which suggests an impending rebound. However, if the price falls below the critical level of $16.15, it could decline by 22%, potentially reaching $12.75. This scenario underscores the volatility and uncertainty surrounding LINK's price movements.

LTC is facing a similarly challenging situation. The recent drop in LINK's price trend has instilled fear in investors' minds, as the cryptocurrency continues to decline from its 52-week high. This downward spiral has reignited discussions about a possible trend reversal, with some observers questioning the sustainability of the current market conditions. The continuous investor accumulation may not have translated into a bullish reversal for LTC yet, but technical indicators suggest that a fresh relief rally could be on the horizon.

Over the past month, link has dropped by 29.37% and fell 13.19% in one week, while rebounding 19.55% over the past six months. The price fluctuations between $10.20 and $22.70 highlight a turbulent period marked by short-term losses and a gradual longer-term recovery. Historical moves suggest a market that has struggled recently but retained underlying strength over a half-year stretch. The current outlook centers on $5.58 as support and $30.59 as resistance, with a secondary barrier at $43.10. Negative indicators, including an Awesome Oscillator of -2.88 and Momentum at -4.51, hint at bearish pressure. No clear trend has emerged, so traders might consider range-bound strategies, buying near support while cautiously watching for any breakout or further decline.

LTC's price movements over the past month show a decline of roughly 17% with a weekly drop nearing 14%, while the half-year performance records a robust gain of over 41%. Price corrections have reflected short-term selling pressure amid overall upwards progression over the last six months. Historical swings exhibit typical altcoin volatility that sets the stage for upcoming market moves. Current prices trade between approximately 93 to 152 dollars. Bulls find resistance near 175 dollars and support holds around 57 dollars. Bears appear dominant in the short term with negative momentum and low RSI around 33, suggesting reactive trading. A possible strategy is to watch for rebounds within these levels for entry points aligned with broader bullish altcoin trends.

Recent price movements show LINK and LTC experiencing a downtrend. Both coins are likely to face further drops before any signs of recovery. Investors should monitor key support levels. This correction period may offer potential buying opportunities once stability returns. Keep an eye on market indicators for better timing.

The broader cryptocurrency market is also grappling with regulatory challenges. The recent bipartisan vote in the House of Representatives to reverse an IRS rule mandating cryptocurrency institutions to collect and report taxpayer and transaction information is a significant development. This move underscores the ongoing tug-of-war between regulators eager to bring crypto under stricter safeguards and lawmakers concerned about stifling innovation in the digital asset sector.

The IRS rule, which arose from provisions in the 2021 Infrastructure Investment and Jobs Act, aimed to strengthen reporting requirements on cryptocurrency transactions. However, critics argued that the policy would be too broad and negatively affect the digital asset ecosystem. The rule's backers, mostly from the Democratic Party, contended that the regulations were necessary to boost tax compliance and crack down on illegal financial activity. Despite the spirited opposition from Democrats, the resolution to roll back the rule passed with an overwhelming majority.

The repeal of the IRS rule is seen as a victory for crypto users, DeFi developers, and blockchain startups. If the resolution is signed into law, US-based crypto platforms will remain exempt from burdensome broker reporting requirements, easing compliance costs and administrative burdens. However, users will still need to report capital gains and losses on their crypto holdings to the IRS, and the agency is likely to pursue other means to increase tax compliance in the space.

The fight over the IRS's proposed crypto rule is part of a larger debate over how digital assets should be regulated. Key questions remain disputed, including how to enforce tax compliance without quelling innovation, where consumer protection should end, and financial privacy should begin. There are also questions over what role the United States should play in crafting global cryptocurrency regulations.

For now, the battle for crypto's rightful role in the financial system is just beginning. The Senate is set to vote soon on the resolution, and the administration is considering how to react. What's clear is that the future of cryptocurrency regulation is full of unknowns, and the outcome will have significant implications for the digital asset ecosystem.

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Electrical_Green_258
03/12
Crypto regs are a mess. Hope the Senate knows what they're doing. Too much is at stake.
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No-Sandwich-5467
03/12
LINK's megaphone pattern got me on edge. Thinking to average down if it dips. Anyone else holding this rollercoaster?
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Roneffect
03/12
LINK's dip could be a buy opp, y'all think?
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WorkingCareful7935
03/12
@Roneffect Bought LINK dip last year, holding strong. No regrets, it's part of my crypto mix.
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Wanderer_369
03/13
@Roneffect How long u holding? Thinking short term or long?
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Dvorak_Pharmacology
03/12
Market's all fear and no hype. Perfect time to accumulate while others panic. Keep calm, folks.
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cyarui
03/12
Stashing some $LTC, riding out the volatility wave.
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Silgro94
03/12
Crypto regs are a minefield, tread carefully, fam.
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Turbonik1
03/12
I'm riding the crypto wave with $TSLA vibes. Diversify, y'all. Don't put all eggs in BTC.
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MonstarGaming
03/12
@Turbonik1 How long you been holding TSLA? Any plans to switch up your strategy?
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Touma_Kazusa
03/12
LTC's resistance at $175 is tough. Maybe a rebound strategy is in order. Not sure yet.
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Direct_Name_2996
03/12
@Touma_Kazusa How long you holding onto your LTC? Any specific target in mind?
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twiggs462
03/12
@Touma_Kazusa I hear ya, $175 resistance is no joke. I'm still hodling, but thinking of taking some profits soon.
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greyenlightenment
03/12
Litecoin's slide got me nervous, but I'm not selling. Altcoins can be volatile, right? 🤔
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Sugamaballz69
03/12
@greyenlightenment I'm still holding my Litecoin too. Not selling, expecting a rebound soon. Bullish on altcoins' long-term growth.
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SeabeeSW3
03/12
@greyenlightenment How long you been holding Litecoin? Thinking of going long or just HODLing?
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TheRealJakeMalloy
03/12
IRS rule repeal is a win, but what's next for global crypto norms? 🌍
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lem_lel
03/12
Crypto volatility is wild. But hey, that's what makes it exciting, right? 😎
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Fit-Possibility-1045
03/12
LINK's support at $5.58 looks solid. I'm betting on a bounce soon. Anyone else?
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Certain-Dragonfly-22
03/12
LINK's got that bearish vibe, but I'm holding long-term. This dip might be a dip buying opp.
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-Joseeey-
03/12
@Certain-Dragonfly-22 How long you holding LINK? Curious if you've got a target price in mind.
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ButterscotchNo2791
03/12
@Certain-Dragonfly-22 I'm also holding LINK long-term. Seen some volatility, but I'm optimistic about its potential.
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Brilliant_User_7673
03/12
Anyone else think $AAPL could get some crypto action soon? Tech giants gotta stay ahead.
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