Many altcoins have been falling recently and one analyst thinks that Chainlink (LINK) could fall further before it finds meaningful support. Chainlink traded over the $15 mark over the summer, but at the time of writing it has fallen to $8.60. TraderSZ was cited as telling his Twitter followers that LINK could fall to the $7 level before it finds any sort of buying. LINK started the year at $1.76, so it has been able to hang on to substantial gains as the summer altcoin rally has turned into a correction. According to the analyst, any break below the $7 level in LINK could open the door for steeper losses.
DeFi tokens have been on a tear and that appears to have ended. While major token like Bitcoin have appreciated modestly over the past calendar year, many of the altcoins have shot higher by far larger amounts. Unlike Bitcoin, which is increasingly being accepted as a means of payment in the global economy, many of the smaller altcoins aren't widely used outside of the crypto space. Without real-world uses, tokens like LINK may return to the levels they saw in 2019. Over time the tokens that are able to successfully create widely used platforms may return to the levels seen a few months ago, but that process will likely play out over the medium-term.
Reddit user Odin_The_Elkhound commented:
It wouldn't surprise me. I feel like the stock markets are overdue for another big correction and hopefully crypto doesn't crash as hard as last time but I don't think we are at the floor right now.