HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

The Chances of a Parabolic Chainlink Rally are Surging; What Analysts Think

Other 2020/12/30 22:00 by Cole Petersen

Chainlink has been severely underperforming Bitcoin as of late, despite its enormous and devoutly loyal community and continued fundamental growth.

This isn’t uncommon for the crypto, as it often trends independent from the rest of the market, seeing some of its largest rallies during the depths of the bear market seen over the past few years.

Its growth from a small ICO to a multi-billion-dollar project has been incredible, and many still believe that its future is brighter than ever.

From a technical perspective, its lackluster performance as of late has caused the crypto to lose some serious value against Bitcoin.

One trader is noting that its BTC price could double and it would still only mark a bearish retest of a previous support level.

This underperformance isn’t unique to Chainlink, as many other major cryptocurrencies have seen massive losses as of late, with most capital being directed to Bitcoin and Ethereum as investors avoid smaller tokens.

Eventually, however, there will be a capital rotation event away from BTC and towards smaller altcoins, allowing for tokens like Chainlink to see massive upside. This is a possibility that analysts believe is incredibly likely.

Chainlink Continues Losing Ground Against Bitcoin as Altcoins Slide Lower

At the time of writing, Chainlink is trading down just over 4% at its current price of $11.28. It has also lost some serious ground against Bitcoin and is showing signs of immense weakness on its BTC trading pair.

The crypto has established the lower-$11.00 region as a strong support zone, but its continuous descent suggests that this level could soon break.

Its weakness seen on its BTC trading pair may also inhibit its growth against USD, making it vital for it to gain some ground against the benchmark crypto in the near-term.

Analyst: LINK Could See a Powerful Rise Once Altcoin Market Rebounds

One analyst pointed to Chainlink’s Bitcoin trading pair to demonstrate just how weak the cryptocurrency has been as of late.

He notes that the longer it drifts lower against BTC, the more potential it has to see a massive rebound once the aggregated altcoin market turns around.

“LINK: Link/BTC could double against BTC and it would still only be a bearish retest. Kind of crazy to think about. The more it dumps the more potential a long has once alts do turn up again. Just gotta be patient till then.”

Chainlink LINK

Image Courtesy of DonAlt. Source: LINKBTC on TradingView.

For now, Bitcoin remains the leader of the market, and altcoins are unlikely to gain any short-term ground against it.

However, this could change on a dime, and capital will likely rotate towards altcoins once it enters a prolonged consolidation phase.

Featured image from Unsplash.
Charts from TradingView.

0 Like(s)



You should also read...

Other 01/05/20 01:00 by Cole Petersen
Chainlink Nears Key Support After Being Battered by Overnight Decline
Although Chainlink has been one of the most bullish cryptocurrencies throughout 2019 and 2020, its short-term price action has lagged against that of Bitcoin and many of its other peers. The crypto is...
Read More
Altcoins 19/06/20 22:00 by Tony Spilotro
Bitcoin Dominance Bear Flag Nears Breakdown, But 58% Level Remains Barrier To Altcoin Season
A bearish chart formation has appeared on Bitcoin dominance that could lead to another leg down and rebound in altcoin/BTC pairs. However, the 58% level could remain a barrier, keeping a full-blown al...
Read More
Other 09/08/20 22:30 by Nick Chong
Analysts Expect Parabolic Tezos (XTZ) Rally as Price Passes Above $3.40
Tezos (XTZ) is breaking out despite stagnation in the prices of Bitcoin, Ethereum, and other leading major cryptocurrencies. The price of the community-favorite altcoin is up 10% in the past 24 hours,...
Read More
Other 19/08/20 23:00 by Cole Petersen
Tezos (XTZ) May Plunge Towards $3.00 as Selling Pressure Ramps Up
Tezos’ price action over the past week has primarily favored sellers, with buyers being unable to catalyze any strong uptrend while also being unable to guard against today’s market-wide selloff. ...
Read More
Altcoins 11/11/20 02:00 by Tony Spilotro
Ethereum Confirms Bullish Retest Of Crucial Support Against Bitcoin
Ethereum spent the summer months easily outperforming Bitcoin, but that trend reversed as soon as the fall months hit. The change in tune towards the DeFi trend helped take the second-ranked cryptocur...
Read More