The Linea price has crashed into a bear market after crashing by over 22% from its highest level this month, mirroring the performance of most recently launched tokens.
Linea token initially surged from $0.0217 on August 12 to a high of $0.035 as investors bought the dip.
Linea Stablecoin Supply Dip as Other Metrics Soar
Recently, however, it has plummeted to $0.027 due to the ongoing crypto market crash, which has pushed most coins downwards. It also fell as many of the airdrop recipients sold their allocations, a common event after a token debut.
The drop is also likely due to network activity. Data shows that the total amount of stablecoins in the Linea network has plunged to $205 million, down from a record high of over $333 million, which it reached on September 15. The biggest stablecoins on the network are USD Coin (USDC), Tether, and Dai.
READ MORE: BNB Price Predictions: Top Reasons Binance Coin is Rising
On the positive side, other metrics on Linea have soared in the past few weeks. For example, the total value locked in the network reached a record high of over $2.2 billion, up from $222 million in May of this year.
Aave holds the largest market share in the network, with over $1.18 billion in assets. The other notable players in the ecosystem are Renzo, Etherex, and ZeroLend.
Linea also hit a record high in terms of DEX volume processing. It has processed transactions worth over $3.9 billion this month, up from $2.04 billion in August and $258 million a month earlier. Most of this volume was in Etherex, Sushi, and PancakeSwap.
Linea Price Technical Analysis
Linea price chart | Source: TradingView
The four-hour chart shows that the Linea crypto price peaked at $0.03515 on September 21 and has since erased these gains, currently trading at $0.027.
Linea token has moved below the 25-period moving average, while the MACD and the Relative Strength Index have all moved downwards.
Therefore, the most likely scenario is that the token will continue to fall in the near term and then resume its uptrend when the ongoing crypto crash ends. If this happens, it means the token will crash to $0.024, its lowest level as of September 1.
READ MORE: Avalanche Price Prediction: Why AVAX May Keep Soaring
