LINK has fallen 32% from its high of $15.50 in late October and is currently around $10.65.
From a technical chart perspective, if it falls below $10, LINK could drop to $9 and may further decline to $7.
The new compliance framework launched by Chainlink utilizes CCIP, ACE, and Data Streams to support on-chain bond standards.
The fundamental progress of Chainlink seems to be more positive than its token price. The price of LINK has fallen by about 32% from its high of $15.50 in late October, and is currently around $10.65. Today's decline has brought it below the 200-day EMA moving average. The question at hand is whether buyers will be able to hold this support level, or if we will see another round of declines.
LINK Price tests support after losing momentum
The $10.65 range is now an important support level; if buying interest intervenes, the price could reverse. However, there isn't much room for the market to weaken further. If it falls below $10, LINK could continue to decline to $9, and $7 is also considered a deeper downside target.
This weakness may not only be present in Chainlink. If the prices of Bitcoin or Ethereum continue to fall, it could also put pressure on the price of LINK, as the broader crypto market will affect its price trend.
Chainlink Compliance and cooperation lead to fundamental progress
Despite poor chart performance, the project still announced a notable advancement. ApexGlobalGroup, T- REX Network, and ERC3643.org have implemented a compliance framework supported by Chainlink, aimed at aligning on-chain bonds with SWIFT standards.
This framework utilizes Chainlink CCIP, ACE, and Data Streams to ensure a set of compliance rules are applied across all chains. This is a meaningful project update, although it has not yet translated into an immediate increase in price strength.
LINK Can it rebound before the next support level is breached?
This contrast is hard to ignore: Chainlink is advancing its institutional infrastructure, while the tokens of LINK are still under selling pressure.
Currently, the price of LINK needs to be maintained around $10.65, and it is necessary to avoid a continuous decline below $10. A rebound is still possible, but the loss of support at the 200-day EMA level, along with broader market weakness, poses a challenging test for this token.
