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Chainlink (LINK) is taking a breather with what many might call a healthy correction. However, leading market analyst Ali Martinez believe there is a possibility of a steeper LINK decline in the near term. The decentralized oracle protocol has lost 5.04% of its price, now set at $15.35.
This drop shows that Chainlink is not immune to a correction after a months-long period of rise. At the time of writing, Chainlink’s 24-hour trading volume is down 34.58% to $789,720,779. Despite this dismal performance carried over from the weekend, Chainlink maintains its outlook for the week in which it has grown up to 23.58%.
In the analyst analysis, the TD Sequential indicator presents a sell signal on Chainlink’s daily, three-day, and weekly charts. While LINK is not currently in the danger zone, Martínez believes that a pullback to $12.5 cannot be ruled out. He went on to note that if Chainlink bulls fail to secure this level, they may drag the price towards the $10.5 support zone.
It is worth noting that Chainlink has not retested the $10.5 level since October 24, and the bulls are likely to defend the current level.
Betting on the Advantage of Staking on Chainlink
For Chainlink, its on-chain metrics are not a big focus for a community that wants a highly functional oracle protocol.
To push this sentiment in the right direction, many LINK proponents will surely start banking on what the Chainlink Stake v0.2 update will usher in the ecosystem shortly. With a gradual rollout beginning this month, Chainlink Staking v0.2 will introduce a more sustainable and inclusive channel for LINK holders to help secure the network and earn a better reward for it.
Chainlink also has many other crucial innovations, such as the Cross-Chain Interoperability Protocol (CCIP), a tool now integrated by companies like Arbitrum. With these solutions, Chainlink has what it takes to sustain its growth and chart a rapid rebound from its current level.
