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 . 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 Chainlink Just Flash Crashed 20%: Here's What's Next For LINK
