Chainlink has plunged since setting highers in August. The coin now trades at around $8.50 as of this article’s writing, far below the all-time highs set at $20.
The cryptocurrency’s correction comes after leading altcoins underwent a strong plunge after Ethereum fell through key supports.
Chainlink could be vulnerable to an even deeper drop as the crypto approaches pivotal technical levels. One trader noted that if LINK will bounce, it will find some support around now.
This bearish assertion comes as a number of other analysts have said Chainlink is likely bottoming on a macro time frame.
One crypto trader thinks that if Chainlink (LINK) slips any lower after dropping over 50% from its all-time high, a strong drop could ensue. He shared the chart below just recently, noting that the cryptocurrency is currently running up against a crucial level of support that marked the highs of a rally in July.
The historical importance of that level suggests that if LINK loses it as support, a strong correction will follow.