Chainlink (LINK) Drops 9% as Fed’s Hawkish Stance Sparks Crypto Market Retreat

Chainlink's LINK token fell sharply by 9% to $16.43 amid a broad cryptocurrency market pullback triggered by hawkish signals from the Federal Reserve. This selloff erased July's bullish momentum, with technical indicators such as the MACD histogram now showing bearish signals.

Federal Reserve Chair Jerome Powell's commitment to keeping interest rates elevated has led to a risk-off shift across digital assets. Institutional investors are quickly reducing risk in their portfolios, particularly for growth-sensitive crypto assets like LINK, which had surged 30% in the previous month.

The downturn goes against analyst predictions of a potential August rally to $28. Market participants are now monitoring whether LINK can maintain critical support levels as the RSI remains neutral at 46, indicating potential for further declines.