A recent oracle update glitch at Chainlink resulted in significant user losses and a drop in token price. This incident raises concerns among investors.
Impact of the Oracle Update Glitch
Chainlink, a leading altcoin, faced a severe issue due to a glitch during an oracle update, leading to user losses exceeding $532,000 in just three minutes. Following this, the price of LINK dropped by 7.77%, reaching $14.54.
On-Chain Data Analysis
Recent data from Alphractal indicates a significant purge of long positions for Chainlink over the past week. The current situation suggests the potential for a short-term bounce if LINK can maintain current levels. Investors are closely monitoring the influx of coins from exchanges to wallets, as strengthening this trend may alleviate selling pressure.
Key Levels on LINK Price Chart
Currently, LINK is trading around $14.54 with a market capitalization of $9.56 billion. The price movement within the day ranged between $14.46 and $15.91, with the first significant support at $13.86. A break below this level could lead to a price decline to as low as $12.70.
Chainlink is at a critical juncture. If short liquidation pressure amplifies and the price reclaims $16, it could lead to a swift relief rally. Otherwise, a breach below $13.86 may set the new target for sellers.
