Chainlink (LINK) has finally undergone some price weakness after a record-setting rally. The asset plunged 20% in the span of 30 minutes according to data from TradingView.com. The asset moved from just shy of its local highs at around $18.80 to a low of $14.50 in the span of that 30 minutes.
The data suggests that the asset plunged in tandem across all major exchanges, suggesting there was a large liquidation event.
Chart of LINK's price action over the past day from TradingView.com. Chart shows the flash crash that transpired over the past hour.
Why Chainlink Might Be Moving
This comes shortly after Placeholder Capital’s Chris Burniske slightly critiqued the project in a Twitter thread:
“More likely that $LINK pumps like mad through this cycle, whales dump towards the end, late-retail gets crushed, and then @chainlink gets replaced by better systems over time. If you decide you don’t like me because I’m not a fan of $LINK’s approach, your choice. I don’t judge peoples’ entire character based on a single asset they choose to (or not to) allocate capital.”
Santiment reported in the wake of the drop that there is a relatively low percentage of all LINK circulating on exchanges. The blockchain analytics firm said, in fact, that there is only 6.9% of the cryptocurrency in exchange wallets.
This metric being this low may allow traders to more easily swing Chainlink in each direction, which is potentially why it may have dropped 20% in those minutes.
Featured Image from Shutterstock Price tags: linkusd, linkbtc Charts from TradingView.com Chainlink Just Flash Crashed 20%: Here's What's Next For LINK