Chainlink’s price is sliding lower today as the entire crypto market shows some signs of weakness. Its ongoing descent comes as BTC breaks below $19,000 and as other cryptocurrencies like ETH also turn lower.
So far, the decline seen by LINK has been tempered, but it is rapidly approaching a crucial support level that has held strong on multiple occasions throughout the past week.
It appears that Bitcoin’s inability to break above its all-time highs in the mid-to-upper $19,000 region is part of why altcoins are struggling to gain momentum. So long as it cannot gain any decisive upwards momentum and set fresh highs, investors may continue fleeing higher-risk assets.
One analytics firm is now noting that Chainlink is growing fundamentally strong as tokens grow more distributed amongst holders.
They note that the supply of LINK held by the top-10 wallets has declined, while the number of new addresses created begins climbing.
This signifies that the crypto could be on the cusp of seeing a strong push higher, as it speaks to the mounting buying pressure amongst retail traders.
Chainlink Plunges to Key Support as Altcoins Selloff
At the time of writing, Chainlink is trading down just over 4% at its current price of $12.94. This is around the price at which it has been trading throughout the past few days.
Just a few days ago, the crypto plunged to lows of $12.40 before finding some strong support that helped it climb back above $13.00.
Although it is now breaking below this level, there is some serious support just below where it is currently trading that may help slow its descent and lead to further upside in the days and weeks ahead.
Analytics Platform: LINK Sees Flood of New Investors
Despite Chainlink’s stagnant price action, the cryptocurrency has seen a wave of new investors who will likely continue boosting its price action in the weeks and months ahead.
While speaking about this, one analytics firm stated that the number of new addresses is growing, indicating new retail investors are pouring money into LINK despite its stagnating trend.
“The percentage of LINK supply held by the top 10 largest whale addresses, continues to decline into December. However, network growth (new addresses created) has picked up, which could be a valid explanation.”
If this trend persists, it could ultimately counteract the headwinds causing the cryptocurrency’s price to decline over the past week.
Featured image from Unsplash. Pricing data from TradingView.