Chainlink price falls 5% as LINK airdrop starts, available for Ethereum Layer-2 users
- Chainlink has rolled outs its much-anticipated airdrop, with distribution based on on-chain activity.
- Up to $20 million has been allocated for the airdrop, which is available for qualified L2 Ethereum users.
- LINK price has succumbed to selling pressure, falling 5% as airdrop holders look to dump
Chainlink (LINK) price is trading with a bearish inclination, having lost all the ground covered during the August 29 rally that was fueled by the Grayscale asset manager’s resounding victory in its longstanding case against the US Securities and Exchange Commission (SEC).
Chainlink price drops as $20 million airdrop commences
Chainlink (LINK) price has shed approximately 5% of its value, moving from the $6.318 intra-day high recorded on Tuesday. The slump can be attributed to the network’s $20 million airdrop, which has inspired a sell off among airdrop token holders.
Finally! Chainlink JUST released INSANE Airdrop which almost ANYONE can get! This is how https://t.co/9XFQS48VGf Chainlink is open-source technology that is collectively developed by a large community of developers, researchers, and users who share the goal of building…
— 周婷婷 (@mico_tin631002) August 30, 2023
The airdrop is available for Ethereum Layer-2 (L2) users that meet the requirements. It is a means for the network to reward the LINK community, while at the same time incentivizing participation in the network.
Chainlink has earned its place among the go-to networks for decentralized finance (DeFi) developers and projects. The popularity attributes to its unique ability to link smart contracts to off-chain data sources. The airdrop is timely, coming at a time when the market is craving volatility. With traders looking for actionable price moves for a quick profit amid a lull market, the sell-off provides futures traders an avenue for profit.
Data from IntoTheBlock shows that inflows into exchanges have been on a steady rise since August 26, suggesting intention to sell as investors sought to avoid the value drop.
LINK inflows into exchanges
LINK price forecast amid increasing selling pressure
At the time of writing, Chainlink price is at $5.907 while working out the next move. Momentum indicators such as the Relative Strength Index (RSI) and the Awesome Oscillator favor the downside, meaning LINK could continue south, potentially losing the $5.808 support level before dipping into the demand zone at $5.407.
Considering a demand zone is characterized by aggressive buying, Chainlink price could bounce from this order block. However, if it fails to hold as a support level, the altcoin could break below the support floor at $5.020.
LINK/USDT 1-day chart
Conversely, investors leveraging the slump to buy the dip could send Chainlink price north, possibly clearing the $6.609 barricade for a chance to test the supply zone at $7.103. LINK could also correct around this zone, where aggressive sellers abound. However, if it fails to hold as a resistance level, an extension north could ensure, confirmed by a decisive daily candlestick close above $7.637.
In a highly bullish case, Chainlink price may extrapolate to the $8.144 supplier congestion zone, levels last seen in late July. This would indicate a 5% ascension against what would then be a bullish breaker.
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Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
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Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.