Summary:
- Chainlink (LINK) has been hard hit by the crypto-wide market correction
- LINK has dropped from the top 20 digital assets on Coinmarketcap
- According to the team at Cane Island Alternative Advisors, Chainlink’s fair value is between $10 and $19
- Chainlink is currently trading at the lower boundary of the fair value and has erased all gains since August 2020
- However, LINK/USDT is oversold on the daily chart and could signal a short-term bounce
The digital asset of Chainlink (LINK) has had a rough year in the crypto markets resulting in its value dropping by 80% since its all-time high of $53 set in May of last year.
At the time of writing, Chainlink (LINK) is trading at $10.13, and it is no longer a top 10 nor a top 20 digital asset in terms of market capitalization. Chainlink is now ranked 27th on Coinmarketcap above FTT and Cosmos (ATOM).
Chainlink’s Fair Value in May is Between $10 and $19
The team at Cane Island Alternative Advisors has also observed Chainlink’s decline in the crypto markets and gone on to provide a forecast of its price. According to their analysis, Chainlink currently has a fair value of between $10 and $19. Their analysis is based on transaction counts and address growth on the Chainlink network. They said:
Based on transaction counts and address growth, the fair value of #ChainLink $LINK was probably between $12 and $22 on March 31. With April’s declines, the FV is probably between $10 and $19; however, we’ll update this the first week of May.
Chainlink Has Erased All Gains Since August 2020
A quick look at the daily LINK/USDT below reveals that Chainlink is back at the $10 support level last witnessed between August and December 2020.
This was also when Zeus Capital was warning investors that the project was vaporware. They had then proceeded to attempt to short Chainlink, but the digital asset went on to set an all-time high of $53 in May 2021.
Also from the chart, it can be observed that Chainlink is in clear bear territory trading below the 50-day, 100-day, and 200-day moving averages. However, LINK’s daily MFI, RSI, and MACD point towards an oversold scenario that could provide the environment necessary for a short-term bounce.
To note is that $10 is a crucial support level for Chainlink. A break of this level will open Chainlink to further losses with $7 and $5 being the next areas of macro support.