Chainlink's LINK Plummets 25% in Dramatic Price Drop
1min read Chainlink, a leading decentralized oracle network, experienced a significant price drop on March 4, 2025, with its native token LINK crashing to $14.5. This decline has reignited concerns among investors and sparked discussions about the potential reasons behind the crash and the future outlook for the cryptocurrency.
The price analysis of chainlink over the past 24 hours reveals a volatile trading environment. After reaching a high of $17.55, the price dropped within a narrow channel, indicating strong selling pressure. Despite temporary rebounds, the overall trend remained bearish, with the price eventually breaking key support levels. This bearish trend was further confirmed by the appearance of a golden cross in the Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI) dropping below the level of 30, suggesting an oversold market condition.
The price moved in a downward-moving channel throughout the day, with the low of the day reaching $13.40. If the price of the range breaks to the downside, it may soon break the low of the day, marking another low and continuing the downtrend. However, if the breakout of the range is to the upside, a short bullish momentum could be seen.
The recent Chainlink crash highlights strong selling pressure, with LINK dropping nearly 25% from the recent high. Despite occasional rebounds, the overall market sentiment remains bearish. If the price fails to recover and continues to break lower lows, the downtrend could extend further. However, a breakout above the resistance level could signal a short-term bullishness in the market. Traders and investors should remain cautious and implement proper risk management before making any decisions in this volatile market.
